Hexcel Corporation (HXL)

Fixed asset turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 1,903,000 1,758,000 1,541,500 1,286,400 1,460,600
Property, plant and equipment US$ in thousands 1,596,700 1,678,700 1,657,800 1,746,100 1,874,200
Fixed asset turnover 1.19 1.05 0.93 0.74 0.78

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,903,000K ÷ $1,596,700K
= 1.19

Hexcel Corporation's fixed asset turnover has shown an improving trend over the past five years. The ratio increased from 0.78 in 2020 to 1.19 in 2024. This indicates that the company is generating more revenue for each dollar of fixed assets invested, reflecting increased operational efficiency and asset utilization. The rising trend suggests that Hexcel is effectively utilizing its fixed assets to generate sales. The company's ability to generate higher sales relative to its fixed assets is a positive indicator of operational performance and efficiency.