ITT Inc (ITT)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,283,000 | 2,987,700 | 2,765,000 | 2,477,800 | 2,846,400 |
| Property, plant and equipment | US$ in thousands | 561,000 | 526,800 | 509,100 | 525,100 | 531,500 |
| Fixed asset turnover | 5.85 | 5.67 | 5.43 | 4.72 | 5.36 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,283,000K ÷ $561,000K
= 5.85
The fixed asset turnover ratio for ITT Inc has shown a consistent increase over the past five years, indicating an improvement in the company's efficiency in generating sales from its fixed assets. The ratio increased from 5.36 in 2019 to 5.85 in 2023. This suggests that ITT Inc has been able to generate $5.85 in sales for every $1 of fixed assets invested in the most recent year.
The upward trend in fixed asset turnover signifies that ITT Inc is effectively utilizing its fixed assets to drive revenue growth. A higher fixed asset turnover ratio is generally viewed positively as it indicates that the company is making efficient use of its assets to generate sales.
Overall, the increasing trend in fixed asset turnover for ITT Inc reflects a positive operational performance and efficient asset management, showcasing the company's ability to generate revenue from its capital investments.
Peer comparison
Dec 31, 2023