Graco Inc (GGG)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,195,610 | 2,143,520 | 1,987,610 | 1,650,120 | 1,646,040 |
| Property, plant and equipment | US$ in thousands | 741,713 | 607,609 | 451,061 | 350,750 | 325,546 |
| Fixed asset turnover | 2.96 | 3.53 | 4.41 | 4.70 | 5.06 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,195,610K ÷ $741,713K
= 2.96
Graco Inc's fixed asset turnover ratio has shown a decreasing trend over the past five years. The ratio decreased from 5.06 in 2019 to 2.96 in 2023. This indicates that the company generated $2.96 in sales revenue for every $1 invested in fixed assets in 2023, compared to $5.06 in 2019.
A declining fixed asset turnover ratio could suggest that Graco Inc is becoming less efficient in utilizing its fixed assets to generate sales. It may indicate that the company's fixed assets are not being utilized effectively or that sales revenue is not increasing proportionately to the investment in fixed assets.
Further analysis and comparison with industry benchmarks would be necessary to determine the reasons behind this trend and evaluate the company's performance in managing its fixed assets efficiently.
Peer comparison
Dec 31, 2023