Chart Industries Inc (GTLS)
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 | 3,032,900 | 2,546,800 | 2,140,800 | 1,710,400 | 1,594,000 | 1,542,100 | 1,458,600 | 1,372,300 | 1,307,700 | 1,241,200 | 1,181,300 | 1,165,200 | 1,190,400 | 1,220,400 | 1,304,000 | 1,307,300 | 1,280,700 | 1,228,400 | 1,145,600 | 1,476,200 |
| Property, plant and equipment | US$ in thousands | 821,500 | 799,700 | 772,100 | 716,000 | 430,000 | 407,100 | 407,200 | 412,400 | 416,000 | 412,300 | 414,000 | 409,300 | 414,500 | 396,000 | 397,500 | 399,300 | 397,800 | 398,900 | 380,900 | 384,600 |
| Fixed asset turnover | 3.69 | 3.18 | 2.77 | 2.39 | 3.71 | 3.79 | 3.58 | 3.33 | 3.14 | 3.01 | 2.85 | 2.85 | 2.87 | 3.08 | 3.28 | 3.27 | 3.22 | 3.08 | 3.01 | 3.84 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,032,900K ÷ $821,500K
= 3.69
The fixed asset turnover ratio measures a company's efficiency in generating revenue from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets.
Chart Industries Inc's fixed asset turnover fluctuated over the past eight quarters, ranging from a low of 2.47 in Q1 2023 to a high of 4.00 in Q4 2023. The company experienced a general upward trend in fixed asset turnover from Q1 2022 to Q3 2022, with a peak of 3.81 in Q3 2022, followed by some fluctuations in subsequent quarters.
Despite the fluctuations, Chart Industries Inc maintained a relatively high fixed asset turnover ratio compared to earlier periods. This suggests that the company has been successful in efficiently generating revenue from its fixed assets, which is a positive sign for the company's operations and profitability.
Investors and stakeholders may view these trends positively as they indicate that Chart Industries Inc has been effectively utilizing its fixed assets to drive revenue growth. However, it is essential to continue monitoring the fixed asset turnover ratio to ensure sustainable and efficient asset utilization in the future.