Hillenbrand Inc (HI)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,826,000 | 2,315,300 | 2,241,400 | 2,517,000 | 1,807,300 |
| Property, plant and equipment | US$ in thousands | 320,700 | 231,900 | 295,100 | 314,200 | 129,400 |
| Fixed asset turnover | 8.81 | 9.98 | 7.60 | 8.01 | 13.97 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,826,000K ÷ $320,700K
= 8.81
The fixed asset turnover ratio measures the efficiency of a company in generating sales revenue from its investment in fixed assets. A higher ratio signifies better utilization of fixed assets to generate sales.
Looking at the data for Hillenbrand Inc's fixed asset turnover from 2019 to 2023, we observe some fluctuations in the ratio:
- In 2019, the fixed asset turnover was quite high at 12.88, indicating that the company was generating significant sales from its investment in fixed assets.
- In 2020, the ratio decreased to 8.01, suggesting a decrease in sales generated from fixed assets compared to the previous year. This might indicate a decrease in operational efficiency or a larger investment in fixed assets without a proportional increase in sales.
- In 2021, the ratio improved to 9.71, indicating a better utilization of fixed assets to generate sales compared to the previous year.
- In 2022, the ratio further increased to 10.47, signaling improved efficiency in generating sales from the investment in fixed assets.
- In 2023, the ratio slightly decreased to 8.81, showing a reduction in sales generated from fixed assets compared to the previous year.
The fluctuations in the fixed asset turnover ratio over the years could be influenced by various factors such as changes in production methods, investment in new equipment, or changes in the sales volume. It is essential to consider the company's industry and business cycle when interpreting these fluctuations.
Overall, while the fixed asset turnover ratio for Hillenbrand Inc has shown some volatility, it has generally remained at a relatively high level. This suggests that the company has been effective in utilizing its fixed assets to generate sales, but a deeper analysis of the company's operational and investment activities would be necessary to fully understand the driving forces behind these fluctuations.
Peer comparison
Sep 30, 2023