Hasbro Inc (HAS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,003,300 | 5,856,700 | 6,420,400 | 5,465,400 | 4,720,200 |
| Property, plant and equipment | US$ in thousands | 361,900 | 304,500 | 261,800 | 297,200 | 255,568 |
| Fixed asset turnover | 13.83 | 19.23 | 24.52 | 18.39 | 18.47 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,003,300K ÷ $361,900K
= 13.83
Hasbro, Inc.'s fixed asset turnover ratio has exhibited fluctuating trends over the past five years. The ratios have ranged from as low as 10.24 in 2023 to a peak of 15.25 in 2021. A high fixed asset turnover ratio signifies that the company efficiently utilizes its fixed assets to generate sales revenue.
The declining trend from 2019 to 2023 indicates that either sales have decreased in relation to fixed assets, or there has been an increase in fixed assets without a proportional rise in sales. This may warrant further investigation into the company's asset management practices and operational efficiency.
It is important for Hasbro, Inc. to analyze the factors contributing to these fluctuations in fixed asset turnover to ensure optimal utilization of assets and sustained growth in the long term. The company may need to reassess its asset base and operational strategies to improve fixed asset turnover and overall profitability.