Hertz Global Holdings Inc (HTZ)
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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,371,000 | 9,222,000 | 9,015,000 | 8,922,000 | 8,685,000 | 8,599,000 | 8,329,000 | 7,858,000 | 7,337,000 | 6,623,000 | 5,665,000 | 4,624,000 | 5,258,000 | 6,349,000 | 7,917,000 | 9,596,000 | 9,780,000 | 9,748,000 | 9,670,000 | 9,548,000 |
| Property, plant and equipment | US$ in thousands | 671,000 | 16,131,000 | 16,510,000 | 14,500,000 | 637,000 | 12,641,000 | 605,000 | 611,000 | 608,000 | 609,000 | 618,000 | 637,000 | 666,000 | 699,000 | 724,000 | 765,000 | 757,000 | 758,000 | 772,000 | 771,000 |
| Fixed asset turnover | 13.97 | 0.57 | 0.55 | 0.62 | 13.63 | 0.68 | 13.77 | 12.86 | 12.07 | 10.88 | 9.17 | 7.26 | 7.89 | 9.08 | 10.94 | 12.54 | 12.92 | 12.86 | 12.53 | 12.38 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $9,371,000K ÷ $671,000K
= 13.97
The fixed asset turnover ratio for Hertz Global Holdings Inc. has been on a decreasing trend over the last five quarters. The ratio declined from 0.66 in Q4 2022 to 0.61 in Q4 2023, indicating that the company generated $0.61 in revenue for each dollar of fixed assets during the most recent quarter. This decrease suggests that the efficiency with which the company is utilizing its fixed assets to generate sales has weakened.
The declining trend in the fixed asset turnover ratio may reflect several possible scenarios, such as a decrease in sales relative to the level of fixed assets, inefficient use of fixed assets, or potential impairment of fixed assets affecting their contribution to revenue generation. It is essential for stakeholders to closely monitor this trend to assess the underlying reasons and evaluate management's strategies to improve operational efficiency and asset utilization in the future.
Peer comparison
Dec 31, 2023