Greif Bros Corporation (GEF)
Fixed asset turnover
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,149,200 | 5,273,800 | 5,465,400 | 5,766,100 | 6,085,200 | 6,322,000 | 6,413,400 | 6,278,700 | 5,977,000 | 5,559,600 | 5,156,700 | 4,746,200 | 4,565,300 | 4,532,800 | 4,593,500 | 4,764,000 | 4,800,700 | 4,585,700 | 4,334,200 | 4,093,900 |
| Property, plant and equipment | US$ in thousands | 1,571,500 | 1,562,600 | 1,524,400 | 1,517,600 | 1,508,400 | 1,455,000 | 1,427,100 | 1,431,500 | 1,456,800 | 1,521,200 | 1,493,000 | 1,499,100 | 1,514,900 | 1,526,900 | 1,588,800 | 1,596,100 | 1,664,800 | 1,690,300 | 1,678,000 | 1,685,400 |
| Fixed asset turnover | 3.28 | 3.38 | 3.59 | 3.80 | 4.03 | 4.35 | 4.49 | 4.39 | 4.10 | 3.65 | 3.45 | 3.17 | 3.01 | 2.97 | 2.89 | 2.98 | 2.88 | 2.71 | 2.58 | 2.43 |
January 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,149,200K ÷ $1,571,500K
= 3.28
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio indicates that the company is generating more sales relative to its investment in fixed assets.
According to the data provided, Greif Inc's fixed asset turnover ratio has been relatively consistent over the past eight quarters, ranging from 3.28 to 4.51. The trend shows a slight decline in recent quarters, with a peak in Q3 2022 at 4.51 and a decrease to 3.28 in Q1 2024.
Overall, Greif Inc appears to be effectively utilizing its fixed assets to generate revenue, as indicated by the consistently strong fixed asset turnover ratios. However, the recent decrease in the ratio may suggest a potential slowdown in the efficiency of fixed asset utilization, which could be a point of concern that requires further investigation.