Forward Air Corporation (FWRD)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,571,371	1,711,459	1,809,146	1,923,575	1,965,894	1,946,041	1,856,214	1,761,536	1,655,923	1,547,601	1,460,946	1,323,276	1,269,573	1,238,888	1,220,574	1,241,783	1,215,187	1,252,092	1,269,784	1,297,240
Property, plant and equipment	US$ in thousands	220,080	258,248	260,663	252,932	249,080	230,924	229,220	224,060	219,095	196,219	186,987	186,944	189,867	190,264	194,595	209,754	192,756	220,843	208,842	206,856
Fixed asset turnover		7.14	6.63	6.94	7.61	7.89	8.43	8.10	7.86	7.56	7.89	7.81	7.08	6.69	6.51	6.27	5.92	6.30	5.67	6.08	6.27

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,571,371K ÷ $220,080K
= 7.14

The fixed asset turnover ratio for Forward Air Corporation has fluctuated over the past few quarters, indicating changes in the efficiency of the company in generating revenue from its fixed assets. The ratio was highest at 8.43 in September 2022, indicating that the company generated $8.43 in revenue for every $1 of fixed assets during that period.

The ratio decreased to 5.92 in March 2020, but generally has shown a positive trend since then. The company demonstrated a relatively stable performance in efficiently utilizing its fixed assets from June 2020 to March 2023, with the ratio fluctuating between 6.27 and 7.61.

Although the fixed asset turnover ratio has varied, the general trend suggests that Forward Air Corporation has been effective in generating revenue using its fixed assets, with the ratio mostly remaining above 6. This indicates that the company has been successful in managing its fixed assets to support revenue generation throughout the analyzed period. It is important for the company to continue monitoring this ratio to ensure efficient utilization of fixed assets for revenue generation in the long term.