Howmet Aerospace Inc (HWM)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,430,000 | 7,270,000 | 7,093,000 | 6,861,000 | 6,640,000 | 6,422,000 | 6,197,000 | 5,942,000 | 5,663,000 | 5,435,000 | 5,285,000 | 5,087,000 | 4,972,000 | 4,925,000 | 4,776,000 | 4,834,000 | 6,834,000 | 8,997,000 | 11,422,000 | 13,860,000 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 2,296,000 | 2,319,000 | 2,321,000 | 2,332,000 | 2,394,000 | 2,340,000 | 2,400,000 | 2,467,000 | 2,483,000 | 2,515,000 | 2,524,000 | 2,592,000 | 2,671,000 | 2,558,000 | 5,358,000 |
| Fixed asset turnover | — | — | — | — | — | 2.80 | 2.67 | 2.56 | 2.43 | 2.27 | 2.26 | 2.12 | 2.02 | 1.98 | 1.90 | 1.92 | 2.64 | 3.37 | 4.47 | 2.59 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,430,000K ÷ $—K
= —
The fixed asset turnover ratio reflects Howmet Aerospace Inc's efficiency in generating revenue from its fixed assets. Over the analyzed period, the company's fixed asset turnover ratio fluctuated, indicating changes in how effectively it utilized its fixed assets to generate sales revenue.
From March 31, 2020, to June 30, 2020, the fixed asset turnover ratio increased significantly from 2.59 to 4.47, suggesting improved efficiency in asset utilization. However, there was a subsequent decline to 3.37 by September 30, 2020. The ratio further decreased to 1.92 by March 31, 2021, indicating a drop in revenue generated from fixed assets.
Throughout the following quarters of 2021 and early 2022, the fixed asset turnover ratio remained relatively stable around the 2 mark, showing moderate efficiency in utilizing fixed assets. Notably, the ratio started to show a gradual improvement from September 30, 2022, reaching 2.43 by December 31, 2022.
By March 31, 2023, the fixed asset turnover ratio continued its upward trend, reaching 2.56, and further increased to 2.67 by June 30, 2023, and 2.80 by September 30, 2023. These increments suggest a positive movement towards better utilization of fixed assets to drive revenue growth.
However, the absence of data for the subsequent periods from December 31, 2023, onward limits a comprehensive analysis of the latest performance. It would be essential to track the fixed asset turnover ratio in future periods to assess the company's ongoing efficiency in generating revenue from fixed assets and identify any trends or potential concerns.
Peer comparison
Dec 31, 2024