Howmet Aerospace Inc (HWM)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,430,000 | 6,640,000 | 5,663,000 | 4,972,000 | 5,259,000 |
| Property, plant and equipment | US$ in thousands | — | — | 2,332,000 | 2,467,000 | 2,592,000 |
| Fixed asset turnover | — | — | 2.43 | 2.02 | 2.03 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,430,000K ÷ $—K
= —
The fixed asset turnover ratio measures Howmet Aerospace Inc's efficiency in generating sales revenue from its investment in fixed assets. The trend of the fixed asset turnover ratio over the years shows consistency in the range of 2.02 to 2.43, indicating that the company has been effectively utilizing its fixed assets to generate sales.
In 2020 and 2021, the fixed asset turnover ratio was around 2.03 and 2.02, respectively. This suggests that for every dollar invested in fixed assets, the company generated approximately $2.03 and $2.02 in sales revenue during those years.
In 2022, there was a notable increase in the fixed asset turnover ratio to 2.43, indicating a more efficient utilization of fixed assets to generate sales revenue. This improvement could be a result of better asset management or increased sales relative to fixed assets investment.
However, the absence of data for 2023 and 2024 makes it difficult to assess the trend's continuation. It is essential for the company to maintain or further improve its fixed asset turnover ratio to ensure ongoing operational efficiency and profitability. A consistently high fixed asset turnover ratio reflects a company's ability to effectively manage its fixed assets to drive sales growth.
Peer comparison
Dec 31, 2024