Huntington Ingalls Industries Inc (HII)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,454,000 | 10,676,000 | 9,524,000 | 9,361,000 | 8,899,000 |
| Property, plant and equipment | US$ in thousands | 3,296,000 | 3,198,000 | 3,107,000 | 2,978,000 | 2,832,000 |
| Fixed asset turnover | 3.48 | 3.34 | 3.07 | 3.14 | 3.14 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,454,000K ÷ $3,296,000K
= 3.48
Huntington Ingalls Industries Inc's fixed asset turnover has shown a generally increasing trend over the past five years. This ratio measures the efficiency of the company in generating revenue from its investment in fixed assets.
The company's fixed asset turnover ratio was 3.48 in 2023, indicating that for every dollar invested in fixed assets, the company generated $3.48 in revenue. This reflects an improvement from the previous year's ratio of 3.34.
In 2021, the fixed asset turnover ratio was 3.07, which was lower compared to 2020's ratio of 3.14. However, the company managed to maintain its fixed asset turnover at 3.14 in both 2020 and 2019.
Overall, Huntington Ingalls Industries Inc's increasing fixed asset turnover ratio suggests that the company is becoming more efficient in utilizing its fixed assets to generate revenue. This trend indicates effective management of assets and efficient operations, which is a positive indicator for potential investors and stakeholders.
Peer comparison
Dec 31, 2023