Six Flags Entertainment Corporation (FUN)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,708,930 | 1,798,670 | 1,817,380 | 1,338,220 | 181,555 |
| Property, plant and equipment | US$ in thousands | 4,294,470 | — | 1,582,360 | 1,710,740 | 1,801,980 |
| Fixed asset turnover | 0.63 | — | 1.15 | 0.78 | 0.10 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,708,930K ÷ $4,294,470K
= 0.63
The fixed asset turnover ratio measures a company's ability to generate revenue relative to its investment in fixed assets. Looking at the historical data for Six Flags Entertainment Corporation, we observe a significant improvement in the fixed asset turnover ratio over the years.
In 2020, the fixed asset turnover was particularly low at 0.10, indicating that the company generated only $0.10 of revenue for every dollar invested in fixed assets. However, by the end of 2021, the ratio improved to 0.78, suggesting that Six Flags began utilizing its fixed assets more efficiently to generate revenue.
By the end of 2022, the fixed asset turnover ratio further increased to 1.15, indicating a remarkable improvement in asset utilization. This suggests that Six Flags was able to generate $1.15 in revenue for every dollar invested in fixed assets, showcasing enhanced efficiency and operational effectiveness.
Unfortunately, data for December 31, 2023, is missing, making it challenging to track the progress for that year. However, by the end of 2024, the fixed asset turnover ratio decreased slightly to 0.63. While the ratio declined compared to the previous year, it still signifies that Six Flags is efficiently utilizing its fixed assets to generate revenue.
Overall, the trend in the fixed asset turnover ratio for Six Flags Entertainment Corporation shows a positive trajectory, indicating improved efficiency and effectiveness in utilizing its fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2024