Forward Air Corporation (FWRD)

Fixed asset turnover

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	2,565,295	2,474,262	2,179,844	1,937,272	1,695,788	1,581,041	1,723,813	1,820,471	1,933,508	1,973,403	1,952,132	1,861,734	1,767,186	1,662,427	1,552,839	1,465,211	1,326,218	1,306,525	1,337,688	1,367,354
Property, plant and equipment	US$ in thousands	—	—	—	—	—	—	—	260,663	252,932	249,080	378,207	383,497	377,397	367,293	338,842	335,638	317,803	189,867	190,264	194,595
Fixed asset turnover		—	—	—	—	—	—	—	6.98	7.64	7.92	5.16	4.85	4.68	4.53	4.58	4.37	4.17	6.88	7.03	7.03

March 31, 2025 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,565,295K ÷ $—K
= —

Fixed asset turnover is a financial ratio that measures the efficiency with which a company generates sales revenue from its fixed assets. Looking at the data provided for Forward Air Corporation, we can see that the fixed asset turnover has exhibited some fluctuations over the reporting periods.

In June 2020 and September 2020, the fixed asset turnover was stable at 7.03. However, there was a slight decrease to 6.88 in December 2020. The ratio then decreased significantly to 4.17 in March 2021, indicating a potential decline in the efficiency of generating sales from fixed assets.

From March 2021 to June 2022, the fixed asset turnover gradually increased from 4.17 to 4.85. This suggests that the company was able to improve its efficiency in utilizing fixed assets to generate revenue during this period.

The ratio peaked at 7.92 in December 2022, indicating a significant improvement in the efficiency of utilizing fixed assets to generate sales. However, it decreased slightly to 6.98 by June 2023.

From September 2023 onwards, the data shows "—", indicating that the fixed asset turnover ratios for those periods are not available.

Overall, the trend in Forward Air Corporation's fixed asset turnover ratio shows some fluctuations, with periods of improvement followed by slight decreases. It is important for the company to analyze the reasons behind these fluctuations to identify any inefficiencies in utilizing its fixed assets effectively for revenue generation.