Griffon Corporation (GFF)

Fixed asset turnover

		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	Mar 31, 2020	Dec 31, 2019
Revenue (ttm)	US$ in thousands	2,569,202	2,527,910	2,540,295	2,579,326	2,596,635	2,667,247	2,748,003	2,820,103	2,760,205	2,432,204	2,324,089	2,184,420	2,207,560	2,509,033	2,492,326	2,417,798	2,351,128	2,264,619	2,208,339	2,196,705
Property, plant and equipment	US$ in thousands	287,489	274,317	266,569	268,230	278,224	250,283	249,597	277,171	280,865	285,458	289,056	274,833	273,756	321,436	322,937	324,731	278,310	322,000	335,820	332,148
Fixed asset turnover		8.94	9.22	9.53	9.62	9.33	10.66	11.01	10.17	9.83	8.52	8.04	7.95	8.06	7.81	7.72	7.45	8.45	7.03	6.58	6.61

September 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,569,202K ÷ $287,489K
= 8.94

The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. Griffon Corporation's fixed asset turnover has shown fluctuation over the past two years. It increased from 6.61 in December 2019 to its peak of 11.01 in March 2023, indicating a significant improvement in asset utilization during this period.

However, starting from March 2023, there has been a slight downward trend in the fixed asset turnover ratio, with values fluctuating between 7.45 to 9.53. Despite the fluctuations, Griffon Corporation has maintained a consistently high fixed asset turnover ratio, reflecting the company's ability to generate substantial revenue relative to its investment in fixed assets.

Overall, Griffon Corporation's fixed asset turnover ratio indicates efficient utilization of its fixed assets to generate revenue. It is important for the company to continue monitoring and managing its fixed asset turnover to ensure optimal asset utilization and profitability in the future.