Ingredion Incorporated (INGR)
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 | 8,160,000 | 8,226,000 | 8,216,000 | 8,191,000 | 7,946,000 | 7,714,000 | 7,454,000 | 7,187,000 | 6,909,000 | 6,747,000 | 6,486,000 | 6,058,000 | 5,987,000 | 5,943,000 | 5,898,000 | 5,983,000 | 5,860,000 | 5,737,000 | 5,730,000 | 5,792,000 |
| Property, plant and equipment | US$ in thousands | 2,370,000 | 2,401,000 | 2,414,000 | 2,397,000 | 2,407,000 | 2,308,000 | 2,375,000 | 2,446,000 | 2,423,000 | 2,369,000 | 2,386,000 | 2,355,000 | 2,455,000 | 2,354,000 | 2,231,000 | 2,208,000 | 2,306,000 | 2,226,000 | 2,232,000 | 2,208,000 |
| Fixed asset turnover | 3.44 | 3.43 | 3.40 | 3.42 | 3.30 | 3.34 | 3.14 | 2.94 | 2.85 | 2.85 | 2.72 | 2.57 | 2.44 | 2.52 | 2.64 | 2.71 | 2.54 | 2.58 | 2.57 | 2.62 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $8,160,000K ÷ $2,370,000K
= 3.44
Ingredion Inc's fixed asset turnover ratio has shown a consistent upward trend over the past eight quarters, reflecting the company's efficiency in generating sales revenue from its fixed assets. The ratio has improved from 2.93 in Q1 2022 to 3.44 in Q4 2023, indicating that the company is utilizing its fixed assets more effectively to drive revenue growth.
The gradual increase in fixed asset turnover demonstrates management's efforts to optimize the use of assets such as property, plants, and equipment to support sales and improve operational performance. This enhanced efficiency is a positive sign for investors and stakeholders as it suggests that the company is effectively managing its assets to generate higher sales relative to the value of its fixed assets.
Overall, the steady increase in fixed asset turnover ratios over the quarters indicates a positive trend in Ingredion Inc's operational efficiency and asset utilization, which may have contributed to enhancing the company's overall financial performance and profitability.
Peer comparison
Dec 31, 2023