Six Flags Entertainment Corporation (FUN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,798,670 | 1,817,380 | 1,338,220 | 181,555 | 1,474,920 |
| Property, plant and equipment | US$ in thousands | — | 1,582,360 | 1,710,740 | 1,801,980 | 1,841,610 |
| Fixed asset turnover | — | 1.15 | 0.78 | 0.10 | 0.80 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,798,670K ÷ $—K
= —
Six Flags Entertainment Corporation's fixed asset turnover ratio has fluctuated over the past five years. In 2023, the ratio was not provided in the table. In 2022, the company achieved a fixed asset turnover of 1.15, indicating that for every dollar of fixed assets, the company generated $1.15 in revenue. This suggests efficient utilization of fixed assets to generate sales.
In 2021, the fixed asset turnover ratio decreased to 0.78, indicating a decrease in the company's ability to generate revenue from its fixed assets compared to the previous year. This may be a cause for concern as it suggests a decline in efficiency in utilizing fixed assets.
The ratio significantly improved in 2020 to 0.10, indicating a substantial increase in revenue generation relative to fixed assets. However, such a low ratio may be a signal of either underutilization of fixed assets or an increase in fixed asset base without a corresponding increase in revenue generation. This warrants further investigation.
In 2019, the fixed asset turnover ratio was 0.80, showing a good balance between fixed asset utilization and revenue generation, although slightly lower than in 2022.
Overall, the trend in the fixed asset turnover ratio for Six Flags Entertainment Corporation shows some fluctuations, indicating varying levels of efficiency in utilizing fixed assets to generate revenue over the five-year period.
Peer comparison
Dec 31, 2023