Insteel Industries Inc (IIIN)
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 | 600,711 | 649,214 | 702,408 | 763,864 | 817,999 | 826,223 | 790,215 | 723,780 | 649,569 | 590,694 | 556,516 | 517,734 | 493,592 | 471,587 | 446,089 | 450,346 | 447,416 | 454,662 | 464,253 | 464,751 |
| Property, plant and equipment | US$ in thousands | 129,300 | 120,014 | 118,788 | 111,946 | 107,178 | 108,156 | 108,265 | 107,159 | 103,442 | 105,624 | 105,729 | 104,680 | 101,351 | 101,392 | 101,089 | 111,674 | 102,665 | 104,960 | 107,331 | 109,377 |
| Fixed asset turnover | 4.65 | 5.41 | 5.91 | 6.82 | 7.63 | 7.64 | 7.30 | 6.75 | 6.28 | 5.59 | 5.26 | 4.95 | 4.87 | 4.65 | 4.41 | 4.03 | 4.36 | 4.33 | 4.33 | 4.25 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $600,711K ÷ $129,300K
= 4.65
The fixed asset turnover ratio measures how effectively a company generates sales from its investment in fixed assets. A higher fixed asset turnover indicates that the company is utilizing its fixed assets more efficiently to generate revenue.
Looking at the trend of Insteel Industries Inc's fixed asset turnover over the past several quarters, we observe a general increase from 4.03 in March 2020 to 7.64 in September 2022, before experiencing a slight decrease to 4.65 in December 2023.
The company's fixed asset turnover has generally been quite strong, consistently above 4. Despite the slight decrease in the most recent quarter, the ratio remains relatively high, indicating that Insteel is efficiently using its fixed assets to generate sales.
Overall, the trend in Insteel Industries Inc's fixed asset turnover suggests that the company has been successful in leveraging its fixed assets to drive revenue generation, although it's worth monitoring any fluctuations in the ratio to assess the company's ongoing efficiency in this area.
Peer comparison
Dec 31, 2023