Innospec Inc (IOSP)
Fixed asset turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,845,600 | 1,873,500 | 1,894,100 | 1,939,500 | 1,948,800 | 1,964,800 | 2,013,700 | 2,000,900 | 1,963,700 | 1,866,200 | 1,729,300 | 1,616,200 | 1,483,400 | 1,380,200 | 1,269,200 | 1,159,600 | 1,192,200 | 1,272,800 | 1,379,600 | 1,497,100 |
| Property, plant and equipment | US$ in thousands | 269,700 | 278,200 | 271,900 | 268,700 | 268,300 | 244,600 | 242,300 | 233,600 | 220,900 | 206,600 | 209,700 | 213,700 | 214,400 | 213,000 | 214,100 | 209,900 | 210,800 | 204,200 | 198,900 | 197,800 |
| Fixed asset turnover | 6.84 | 6.73 | 6.97 | 7.22 | 7.26 | 8.03 | 8.31 | 8.57 | 8.89 | 9.03 | 8.25 | 7.56 | 6.92 | 6.48 | 5.93 | 5.52 | 5.66 | 6.23 | 6.94 | 7.57 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,845,600K ÷ $269,700K
= 6.84
Innospec Inc's fixed asset turnover ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio measures the efficiency of the company's fixed assets in generating sales revenue, with a higher ratio indicating more effective utilization of fixed assets.
In March 31, 2020, the fixed asset turnover was 7.57, indicating that the company generated $7.57 in sales revenue for every dollar invested in fixed assets. The ratio then showed a decreasing trend until September 30, 2021, reaching a low of 5.52. This decline could suggest inefficiencies or underutilization of fixed assets during this period.
From September 30, 2021, onwards, the fixed asset turnover ratio started to increase steadily, reaching a peak of 9.03 on September 30, 2022. This upward trend indicates improved efficiency in leveraging fixed assets to generate sales. However, the ratio decreased slightly by December 31, 2022, and continued to fluctuate around the range of 7 to 9 until December 31, 2024, where it was 6.84.
Overall, the trend in Innospec Inc's fixed asset turnover ratio reflects varying levels of efficiency in utilizing fixed assets to generate sales revenue over the analyzed period. Investors and stakeholders should continue to monitor this ratio to assess the company's ability to maximize the returns from its fixed asset investments.
Peer comparison
Dec 31, 2024