Griffon Corporation (GFF)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,621,550 | 2,596,560 | 2,760,350 | 2,207,580 | 2,333,180 |
| Property, plant and equipment | US$ in thousands | 287,489 | 278,224 | 280,865 | 273,756 | 278,310 |
| Fixed asset turnover | 9.12 | 9.33 | 9.83 | 8.06 | 8.38 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,621,550K ÷ $287,489K
= 9.12
Griffon Corporation's fixed asset turnover has shown a fluctuating trend over the past five years. The company's fixed asset turnover ratio ranged from 8.06 to 9.83 during this period. Although there was variability in the ratio, it generally remained at a relatively high level, indicating that the company efficiently utilized its fixed assets to generate sales. A higher fixed asset turnover ratio suggests that Griffon Corporation was effective in generating sales revenue in relation to its investment in fixed assets. This efficiency in asset utilization could be attributed to effective operational management and optimal utilization of resources. Overall, the trend in Griffon Corporation's fixed asset turnover ratio suggests efficiency in managing fixed assets to generate revenue.