Hayward Holdings Inc (HAYW)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 922,271 | 923,297 | 948,260 | 1,064,159 | 1,263,605 | 1,358,135 | 1,463,492 | 1,424,864 | 1,342,456 |
| Property, plant and equipment | US$ in thousands | 150,536 | 150,954 | 147,062 | 143,073 | 140,940 | 139,507 | 138,503 | 141,368 | 138,737 |
| Fixed asset turnover | 6.13 | 6.12 | 6.45 | 7.44 | 8.97 | 9.74 | 10.57 | 10.08 | 9.68 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $922,271K ÷ $150,536K
= 6.13
The fixed asset turnover ratio measures how efficiently a company generates sales from its fixed assets. A higher ratio indicates that the company is using its fixed assets more effectively to generate revenue.
Looking at the trend of Hayward Holdings Inc's fixed asset turnover ratio over the past eight quarters, we observe a general declining trend from a high of 10.25 in Q2 2022 to a low of 6.24 in Q4 2023. This downward trend suggests that the company may be becoming less efficient in utilizing its fixed assets to generate sales over time.
The fluctuations in the ratio from quarter to quarter indicate potential variability in sales relative to the value of fixed assets during those periods. For instance, the ratio peaked at 8.77 in Q4 2022 before declining steadily in subsequent quarters.
Further analysis would be needed to understand the reasons behind the changes in the fixed asset turnover ratio. Factors such as changes in sales volume, asset impairments, or investment in new fixed assets could all contribute to the fluctuations observed in Hayward Holdings Inc's fixed asset turnover ratio.
Peer comparison
Dec 31, 2023