Harley-Davidson Inc (HOG)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,836,480 | 5,755,130 | 5,336,310 | 4,054,380 | 5,361,790 |
| Property, plant and equipment | US$ in thousands | 731,724 | 689,886 | 683,984 | 743,784 | 847,382 |
| Fixed asset turnover | 7.98 | 8.34 | 7.80 | 5.45 | 6.33 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,836,480K ÷ $731,724K
= 7.98
Fixed asset turnover measures how efficiently a company generates sales revenue from its investments in fixed assets. It is calculated by dividing net sales by average fixed assets.
Based on the data provided for Harley-Davidson, Inc., the fixed asset turnover ratio has fluctuated over the past five years. In 2023, the ratio was 7.98, slightly lower than the previous year's 8.34. This indicates that the company generated approximately $7.98 in sales for every $1 invested in fixed assets in 2023.
Comparing this ratio to 2021 and 2020, Harley-Davidson's efficiency in utilizing its fixed assets improved significantly in 2022 but saw a slight decline in 2023. However, the company's fixed asset turnover in 2023 was still higher than the ratios reported in 2019 and 2020.
Overall, a higher fixed asset turnover ratio suggests better efficiency in asset utilization and revenue generation. Although the ratio decreased from the previous year, Harley-Davidson's ability to generate sales from its fixed assets remains relatively strong based on the 2023 numbers.
Peer comparison
Dec 31, 2023