Corning Incorporated (GLW)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,588,000 | 14,189,000 | 14,082,000 | 11,303,000 | 11,503,000 |
| Property, plant and equipment | US$ in thousands | 14,630,000 | 15,371,000 | 15,804,000 | 15,742,000 | 15,337,000 |
| Fixed asset turnover | 0.86 | 0.92 | 0.89 | 0.72 | 0.75 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $12,588,000K ÷ $14,630,000K
= 0.86
Corning, Inc.'s fixed asset turnover ratio has fluctuated over the past five years, with values ranging from 0.72 to 0.92. The fixed asset turnover ratio measures how efficiently the company generates sales revenue from its investments in fixed assets. A higher value indicates that the company is using its fixed assets more efficiently to generate sales.
In 2023, the fixed asset turnover ratio decreased to 0.86 from 0.92 in 2022. This may indicate that Corning, Inc. was slightly less efficient in utilizing its fixed assets to generate sales revenue compared to the previous year. However, despite the decrease, the ratio remains relatively stable within the range observed in the past five years.
It is essential for Corning, Inc. to monitor and analyze its fixed asset turnover ratio consistently to ensure optimal utilization of fixed assets and enhance operational efficiency. Further analysis and comparison with industry benchmarks could provide additional insights into the company's performance and competitiveness within the market.
Peer comparison
Dec 31, 2023