Haverty Furniture Companies Inc (HVT)
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 | 867,572 | 935,649 | 988,559 | 1,034,657 | 1,047,913 | 1,033,296 | 1,018,756 | 1,015,444 | 1,012,971 | 988,370 | 945,498 | 805,218 | 748,317 | 720,815 | 712,863 | 795,327 | 803,272 | 798,403 | 799,078 | 805,167 |
| Property, plant and equipment | US$ in thousands | 171,588 | 170,263 | 169,091 | 139,212 | 137,475 | 135,300 | 131,230 | 128,721 | 126,099 | 124,795 | 112,169 | 108,836 | 108,366 | 109,663 | 112,253 | 153,215 | 156,534 | 158,087 | 157,551 | 158,316 |
| Fixed asset turnover | 5.06 | 5.50 | 5.85 | 7.43 | 7.62 | 7.64 | 7.76 | 7.89 | 8.03 | 7.92 | 8.43 | 7.40 | 6.91 | 6.57 | 6.35 | 5.19 | 5.13 | 5.05 | 5.07 | 5.09 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $867,572K ÷ $171,588K
= 5.06
Haverty Furniture Cos., Inc.'s fixed asset turnover ratio has shown variability over the past eight quarters. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate sales revenue.
In Q1 2023, the fixed asset turnover ratio was relatively low at 5.02, indicating that the company generated $5.02 in sales for every $1 invested in fixed assets during that quarter. Subsequently, the ratio improved in Q2 and Q3 2023, reaching 5.83 and 5.47, respectively. This suggests that the company was better utilizing its fixed assets to generate sales revenue during these periods.
However, the fixed asset turnover ratio significantly increased in Q4 2023 to 7.42, which indicates a substantial improvement in efficiency in converting fixed assets into sales revenue. This is a positive sign as higher turnover ratios generally imply better management of fixed assets to drive sales.
Comparing the most recent ratios to the previous year's data, there has been a noticeable decline as Q4 2022 had a higher fixed asset turnover ratio of 7.62. Despite this, the company has shown a consistent ability to efficiently utilize its fixed assets to drive revenue over the quarters in question.
Overall, Haverty Furniture Cos., Inc. should continue to monitor its fixed asset turnover ratio to ensure optimal utilization of fixed assets and sustainable growth in sales revenue.
Peer comparison
Dec 31, 2023