Graco Inc (GGG)
Fixed asset turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,195,606 | 2,184,007 | 2,189,979 | 2,178,882 | 2,143,521 | 2,128,095 | 2,069,147 | 2,027,764 | 1,987,608 | 1,918,329 | 1,870,949 | 1,730,677 | 1,650,115 | 1,592,067 | 1,553,306 | 1,614,742 | 1,646,045 | 1,640,191 | 1,655,572 | 1,651,814 |
| Property, plant and equipment | US$ in thousands | 741,713 | 707,828 | 680,040 | 633,482 | 607,609 | 562,807 | 516,156 | 487,805 | 451,061 | 416,518 | 387,906 | 360,370 | 350,750 | 332,268 | 327,476 | 332,078 | 325,546 | 308,656 | 286,521 | 256,776 |
| Fixed asset turnover | 2.96 | 3.09 | 3.22 | 3.44 | 3.53 | 3.78 | 4.01 | 4.16 | 4.41 | 4.61 | 4.82 | 4.80 | 4.70 | 4.79 | 4.74 | 4.86 | 5.06 | 5.31 | 5.78 | 6.43 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,195,606K ÷ $741,713K
= 2.96
The fixed asset turnover ratio for Graco Inc has shown a consistent and increasing trend over the last few quarters. The ratio has steadily improved from 2.96 at the end of December 2019 to 6.43 at the end of March 2019, indicating the company's ability to generate revenue from its investment in fixed assets.
A higher fixed asset turnover ratio suggests that the company is utilizing its fixed assets more efficiently to generate sales. This could be due to factors such as increasing productivity, better inventory management, or effective utilization of machinery and equipment.
The overall trend of increasing fixed asset turnover ratio reflects positively on Graco Inc's operational efficiency and effectiveness in utilizing its fixed assets to drive revenue growth. Investors and stakeholders may view this trend as a sign of operational strength and good management of the company's asset base.
Peer comparison
Dec 31, 2023