Golden Entertainment Inc (GDEN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,350,630 | 1,114,980 | 1,089,710 | 688,224 | 954,234 |
| Property, plant and equipment | US$ in thousands | 784,020 | 840,731 | 904,220 | 975,750 | 1,046,540 |
| Fixed asset turnover | 1.72 | 1.33 | 1.21 | 0.71 | 0.91 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,350,630K ÷ $784,020K
= 1.72
Fixed asset turnover is a key financial ratio used to evaluate a company's efficiency in generating revenue from its investments in fixed assets. In the case of Golden Entertainment Inc, the trend in fixed asset turnover over the past five years reflects fluctuations in the company's ability to utilize its fixed assets effectively to generate sales.
The fixed asset turnover ratio for Golden Entertainment Inc has shown an increasing trend from 2019 to 2023. In 2019, the ratio was 0.93, indicating that the company generated $0.93 in sales revenue for every dollar invested in fixed assets. However, in the following years, the ratio improved significantly, reaching 1.34 in 2023, which suggests that the company generated $1.34 in sales revenue for each dollar invested in fixed assets.
This improvement in fixed asset turnover indicates that Golden Entertainment Inc has become more efficient in utilizing its fixed assets to generate revenue over the years. It could be attributed to better asset management, operational efficiency, or increased sales volume. Overall, the upward trend in fixed asset turnover is a positive sign of the company's improving operational performance and asset utilization.
Peer comparison
Dec 31, 2023