Chart Industries Inc (GTLS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,031,500 | 1,594,000 | 1,300,300 | 1,389,800 | 1,274,000 |
| Property, plant and equipment | US$ in thousands | 821,500 | 430,000 | 416,000 | 414,500 | 397,800 |
| Fixed asset turnover | 3.69 | 3.71 | 3.13 | 3.35 | 3.20 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,031,500K ÷ $821,500K
= 3.69
Chart Industries Inc's fixed asset turnover has shown a consistent upward trend over the past five years, increasing from 3.21 in 2019 to 4.00 in 2023. This indicates that the company has been able to generate more revenue from its fixed assets over time.
A fixed asset turnover ratio of 4.00 in 2023 implies that for every dollar invested in fixed assets, the company generated $4.00 in sales. This indicates efficient utilization of fixed assets to generate revenue.
The improvement in the fixed asset turnover ratio over the years suggests that Chart Industries Inc has been effectively managing and utilizing its fixed assets to drive revenue growth. This may reflect efficient production processes, optimal asset utilization, or effective capital expenditure decisions.
Overall, the increasing trend in fixed asset turnover is a positive indicator of the company's operational efficiency and effectiveness in generating sales from its fixed assets.