Hayward Holdings Inc (HAYW)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 917,868 | 1,256,620 | 1,337,320 |
| Property, plant and equipment | US$ in thousands | 150,536 | 140,940 | 138,737 |
| Fixed asset turnover | 6.10 | 8.92 | 9.64 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $917,868K ÷ $150,536K
= 6.10
Fixed asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its investment in fixed assets. Higher fixed asset turnover ratios indicate better utilization of fixed assets to generate sales.
In the case of Hayward Holdings Inc, the fixed asset turnover has decreased from 9.55 in 2021 to 8.77 in 2022, and further to 6.24 in 2023. This declining trend suggests that the company may be less efficient in using its fixed assets to generate sales revenue over the years.
A fixed asset turnover of 6.24 in 2023 means that for every dollar invested in fixed assets, Hayward Holdings Inc generated $6.24 in sales revenue. This is lower than the ratios of 8.77 and 9.55 in the previous two years, indicating a potential issue with asset utilization efficiency that may need to be addressed by the company's management.
Overall, it is crucial for Hayward Holdings Inc to analyze the reasons behind the decline in fixed asset turnover and take necessary measures to improve the efficiency of its fixed asset utilization in order to enhance profitability and long-term sustainability.
Peer comparison
Dec 31, 2023