International Flavors & Fragrances Inc (IFF)

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	11,022,000	11,168,000	11,438,000	11,857,000	12,104,000	12,324,000	12,342,000	12,122,000	11,368,000	9,645,100	7,879,920	6,034,230	4,948,650	4,856,730	4,891,250	5,016,510	4,999,490	8,882,710	8,522,918	8,151,364
Property, plant and equipment	US$ in thousands	4,240,000	4,126,000	4,218,000	4,224,000	4,203,000	4,055,000	4,177,000	4,295,000	4,368,000	4,295,000	4,566,000	4,587,000	1,458,000	1,380,420	1,355,620	1,339,120	1,386,920	1,313,540	1,316,300	1,294,030
Fixed asset turnover		2.60	2.71	2.71	2.81	2.88	3.04	2.95	2.82	2.60	2.25	1.73	1.32	3.39	3.52	3.61	3.75	3.60	6.76	6.47	6.30

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,022,000K ÷ $4,240,000K
= 2.60

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its fixed assets. It shows how efficiently the company is utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more efficiently.

Looking at the data provided for International Flavors & Fragrances Inc., we can see that the fixed asset turnover ratio has been fluctuating over the past eight quarters. In the most recent quarter, Q4 2023, the fixed asset turnover ratio was 2.71, which decreased from the previous quarter but remained relatively stable compared to previous quarters. This suggests that the company generated $2.71 in revenue for every dollar invested in fixed assets during that quarter.

Overall, the trend in the fixed asset turnover ratio for International Flavors & Fragrances Inc. has been relatively positive, with the ratio generally remaining above 2.5 over the past two years. This indicates that the company has been effectively utilizing its fixed assets to generate sales. However, it is essential to continue monitoring this ratio to ensure that the company maintains its efficiency in utilizing its fixed assets in the future.