Insteel Industries Inc (IIIN)
Fixed asset turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 529,219 | 549,135 | 569,054 | 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 |
| Property, plant and equipment | US$ in thousands | 125,540 | 127,889 | 127,534 | 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 |
| Fixed asset turnover | 4.22 | 4.29 | 4.46 | 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 |
September 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $529,219K ÷ $125,540K
= 4.22
The fixed asset turnover ratio for Insteel Industries Inc has been relatively stable over the past few years. The ratio measures how efficiently the company is using its fixed assets to generate revenue.
The trend shows an improvement in the efficiency of utilizing fixed assets to generate sales from 2019 to mid-2023, with the ratio steadily increasing from 4.03 to 6.82. This indicates that the company was able to generate more revenue for each dollar invested in fixed assets during this period.
However, there seems to be a slight decline in the fixed asset turnover ratio from mid-2023 to the most recent data in Sep 2024. Despite this decline, the ratio remains relatively high, indicating that Insteel Industries Inc is still effectively utilizing its fixed assets to generate revenue.
Overall, the company's fixed asset turnover ratio indicates efficient management of fixed assets to drive sales growth, albeit with a slight dip in recent periods that may warrant further investigation to understand the underlying factors.
Peer comparison
Sep 30, 2024