Ingredion Incorporated (INGR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,160,000 | 7,946,000 | 6,894,000 | 5,966,000 | 6,200,000 |
| Property, plant and equipment | US$ in thousands | 2,370,000 | 2,407,000 | 2,423,000 | 2,455,000 | 2,306,000 |
| Fixed asset turnover | 3.44 | 3.30 | 2.85 | 2.43 | 2.69 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,160,000K ÷ $2,370,000K
= 3.44
Ingredion Inc's fixed asset turnover has shown a generally increasing trend over the five-year period from 2019 to 2023. The company's ability to generate sales from its fixed assets has improved steadily, with the ratio increasing from 2.69 in 2019 to 3.44 in 2023. This indicates that the company has become more efficient in utilizing its fixed assets to generate revenue.
A higher fixed asset turnover ratio suggests that Ingredion Inc is effectively managing and utilizing its fixed assets to generate sales, which is a positive sign for investors and creditors. The company's ability to generate more revenue from its fixed assets can lead to higher profitability and return on investment. Overall, the increasing trend in fixed asset turnover reflects the company's efficient management of its asset base to drive sales growth and create shareholder value.
Peer comparison
Dec 31, 2023