Innospec Inc (IOSP)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,948,800 | 1,963,700 | 1,483,400 | 1,192,300 | 1,512,300 |
| Property, plant and equipment | US$ in thousands | 268,300 | 220,900 | 214,400 | 210,800 | 198,700 |
| Fixed asset turnover | 7.26 | 8.89 | 6.92 | 5.66 | 7.61 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,948,800K ÷ $268,300K
= 7.26
The fixed asset turnover ratio for Innospec Inc has fluctuated over the past five years, ranging from 5.66 to 8.89. A higher ratio indicates that the company is generating more revenue relative to its investment in fixed assets. The peak ratio of 8.89 in 2022 suggests that the company was able to efficiently utilize its fixed assets to generate sales during that year. However, the ratio decreased to 7.26 in 2023, indicating a slight decrease in the efficiency of generating sales from fixed assets compared to the previous year. Overall, the company has shown varying levels of efficiency in utilizing its fixed assets to generate revenue over the past five years. Potential reasons for these fluctuations could include changes in production capacity, asset utilization, or sales performance.
Peer comparison
Dec 31, 2023