Hillenbrand Inc (HI)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,182,800 | 2,826,000 | 2,315,300 | 2,241,400 | 2,517,000 |
| Property, plant and equipment | US$ in thousands | 316,600 | 320,700 | 231,900 | 295,100 | 314,200 |
| Fixed asset turnover | 10.05 | 8.81 | 9.98 | 7.60 | 8.01 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,182,800K ÷ $316,600K
= 10.05
The fixed asset turnover ratio for Hillenbrand Inc has shown a consistent increasing trend over the past five years, indicating that the company has been effectively utilizing its fixed assets to generate revenue. The ratio has improved from 8.01 in 2020 to 10.05 in 2024, reaching its peak during this period.
A high fixed asset turnover ratio suggests that the company is efficiently using its fixed assets to generate sales. This could be attributed to effective asset management, operational efficiency, and strong sales performance. Hillenbrand Inc's ability to generate higher sales relative to its investment in fixed assets has improved over the years, reflecting positively on the company's operational effectiveness.
Overall, the increasing trend in fixed asset turnover for Hillenbrand Inc signifies the company's ability to maximize the utilization of its fixed assets to drive revenue and indicates sound operational performance in effectively managing and deploying its fixed asset base.
Peer comparison
Sep 30, 2024