International Flavors & Fragrances Inc (IFF)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,484,000 | 11,479,000 | 12,440,000 | 11,656,000 | 5,084,240 |
| Property, plant and equipment | US$ in thousands | — | — | 4,861,000 | 4,368,000 | 1,458,180 |
| Fixed asset turnover | — | — | 2.56 | 2.67 | 3.49 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,484,000K ÷ $—K
= —
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales from its investments in fixed assets, such as property, plant, and equipment. In the case of International Flavors & Fragrances Inc, the fixed asset turnover has shown a declining trend over the years.
As of December 31, 2020, the fixed asset turnover was 3.49, indicating that the company generated $3.49 in sales for every dollar invested in fixed assets. However, by December 31, 2021, the ratio had decreased to 2.67, suggesting a lower efficiency in utilizing fixed assets to generate sales.
Further, by December 31, 2022, the fixed asset turnover decreased to 2.56, signaling a continued downward trend and a further decline in the company's ability to convert fixed assets into revenue. The lack of data for the years 2023 and 2024 prohibits a complete analysis of the trend during those periods.
Overall, the declining trend in International Flavors & Fragrances Inc's fixed asset turnover raises concerns about the company's efficiency in utilizing its fixed assets to generate sales. It may indicate a need for the company to evaluate its asset utilization strategies and consider potential improvements to enhance operational efficiency and profitability.
Peer comparison
Dec 31, 2024