Freshpet Inc (FRPT)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 975,177 | 766,895 | 595,344 | 425,489 | 318,790 |
| Property, plant and equipment | US$ in thousands | — | — | 805,751 | 590,459 | 281,073 |
| Fixed asset turnover | — | — | 0.74 | 0.72 | 1.13 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $975,177K ÷ $—K
= —
The fixed asset turnover ratio for Freshpet Inc. demonstrates notable fluctuations over the period from December 31, 2020, to December 31, 2023. As of December 31, 2020, the ratio was recorded at 1.13, indicating that the company generated $1.13 in revenue for every dollar invested in its fixed assets. This suggests a relatively efficient use of its fixed assets during that year.
By December 31, 2021, the ratio declined significantly to 0.72, reflecting a reduction in sales or an increase in fixed assets relative to sales. This decrease may point toward a period of investment in fixed assets without an immediate proportional increase in revenue, or it could indicate declining asset utilization efficiency.
The ratio remained relatively stable in 2022 at 0.74, showing little recovery from the previous year’s decline. It suggests that the efficiency of fixed asset utilization remained low and did not improve substantially during this period.
Data for December 31, 2023, and beyond is unavailable, depicted as missing (represented by the "—" symbols). The absence of data limits the ability to analyze subsequent trends or the impact of any strategic changes made by the company post-2022.
Overall, the downward trend from 2020 through 2022 suggests a period of decreased fixed asset productivity at Freshpet Inc., which warrants further investigation into the specific factors influencing this decline, such as investments in new assets, operational inefficiencies, or shifts in sales volume.
Peer comparison
Dec 31, 2024