Innospec Inc (IOSP)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,845,600 | 1,948,800 | 1,963,700 | 1,483,400 | 1,192,300 |
| Property, plant and equipment | US$ in thousands | 269,700 | 268,300 | 220,900 | 214,400 | 210,800 |
| Fixed asset turnover | 6.84 | 7.26 | 8.89 | 6.92 | 5.66 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,845,600K ÷ $269,700K
= 6.84
The fixed asset turnover ratio for Innospec Inc has shown a positive trend over the past five years. It increased steadily from 5.66 in December 31, 2020, to 6.92 in December 31, 2021, further improving to 8.89 in December 31, 2022. However, there was a slight decline in the ratio in December 31, 2023, to 7.26, followed by a further decrease to 6.84 in December 31, 2024.
This ratio indicates the company's efficiency in generating revenue from its investments in fixed assets. A higher turnover ratio generally suggests that the company is effectively utilizing its fixed assets to generate sales. Even though there was a decrease in the ratio in the last two years, the overall trend indicates that Innospec Inc has been able to efficiently use its fixed assets to generate revenue during the period under consideration.
Peer comparison
Dec 31, 2024