International Flavors & Fragrances Inc (IFF)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,002,000 | 12,118,000 | 11,368,000 | 4,948,650 | 4,999,500 |
| Property, plant and equipment | US$ in thousands | 4,240,000 | 4,203,000 | 4,368,000 | 1,458,000 | 1,386,920 |
| Fixed asset turnover | 2.59 | 2.88 | 2.60 | 3.39 | 3.60 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,002,000K ÷ $4,240,000K
= 2.59
International Flavors & Fragrances Inc.'s fixed asset turnover has shown some fluctuations over the past five years. The ratio decreased from 3.71 in 2019 to 2.71 in 2023, with a peak in 2020 at 3.49. This indicates that the company generated $2.71 in revenue for every dollar invested in fixed assets in 2023.
A lower fixed asset turnover ratio could suggest a decrease in efficiency in utilizing fixed assets to generate revenue. It could be due to the company not maximizing the productive use of its fixed assets or facing challenges in generating sales from these assets.
However, it is important to consider industry norms and compare the ratio with competitors to get a better perspective on the company's performance in this regard. Further analysis combining this ratio with others and considering the company's overall financial health would provide a more comprehensive understanding of International Flavors & Fragrances Inc.'s fixed asset management efficiency.
Peer comparison
Dec 31, 2023