Howmet Aerospace Inc (HWM)
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 | 6,433,000 | 6,183,000 | 5,969,000 | 5,711,000 | 5,433,000 | 5,204,000 | 4,929,000 | 4,699,000 | 4,565,000 | 4,582,000 | 4,540,000 | 4,551,000 | 6,523,000 | 8,686,000 | 11,183,000 | 13,758,000 | 14,192,000 | 14,263,000 | 14,228,000 | 14,110,000 |
| Property, plant and equipment | US$ in thousands | 2,328,000 | 2,296,000 | 2,319,000 | 2,321,000 | 2,332,000 | 2,288,000 | 2,340,000 | 2,400,000 | 2,467,000 | 2,483,000 | 2,515,000 | 2,524,000 | 2,592,000 | 2,552,000 | 2,558,000 | 5,358,000 | 2,629,000 | 5,377,000 | 5,517,000 | 5,727,000 |
| Fixed asset turnover | 2.76 | 2.69 | 2.57 | 2.46 | 2.33 | 2.27 | 2.11 | 1.96 | 1.85 | 1.85 | 1.81 | 1.80 | 2.52 | 3.40 | 4.37 | 2.57 | 5.40 | 2.65 | 2.58 | 2.46 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,433,000K ÷ $2,328,000K
= 2.76
The fixed asset turnover ratio for Howmet Aerospace Inc has been trending upwards over the past eight quarters, indicating an improvement in the efficiency with which the company is utilizing its fixed assets to generate revenue. The ratio has increased from 2.12 in Q1 2022 to 2.85 in Q4 2023, suggesting that the company is generating $2.85 in revenue for every dollar invested in fixed assets at the end of Q4 2023. This consistent improvement in the ratio signifies that Howmet Aerospace Inc has been successful in optimizing its asset utilization over time, potentially through better asset management or increased sales efficiency. Overall, the increasing trend in fixed asset turnover reflects positively on the company's operational efficiency and ability to generate revenue from its fixed assets.
Peer comparison
Dec 31, 2023