ITT Inc (ITT)
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 | 3,283,000 | 3,228,500 | 3,160,000 | 3,059,400 | 2,987,700 | 2,898,500 | 2,834,500 | 2,792,800 | 2,765,000 | 2,788,200 | 2,689,800 | 2,512,900 | 2,477,800 | 2,488,300 | 2,609,000 | 2,814,200 | 2,846,400 | 2,805,700 | 2,774,400 | 2,751,300 |
| Property, plant and equipment | US$ in thousands | 561,000 | 523,200 | 528,700 | 528,000 | 526,800 | 491,500 | 501,200 | 504,900 | 509,100 | 494,700 | 502,700 | 501,200 | 525,100 | 505,700 | 505,400 | 511,500 | 531,500 | 521,700 | 534,100 | 513,200 |
| Fixed asset turnover | 5.85 | 6.17 | 5.98 | 5.79 | 5.67 | 5.90 | 5.66 | 5.53 | 5.43 | 5.64 | 5.35 | 5.01 | 4.72 | 4.92 | 5.16 | 5.50 | 5.36 | 5.38 | 5.19 | 5.36 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,283,000K ÷ $561,000K
= 5.85
ITT Inc's fixed asset turnover ratio has shown relatively stable performance over the past eight quarters, ranging from 5.53 to 6.17. This ratio indicates the company's ability to generate sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio suggests that the company is efficiently utilizing its fixed assets to generate revenue.
Based on the data provided, ITT Inc's fixed asset turnover ratio peaked in Q3 2023 at 6.17, indicating that the company was able to generate $6.17 in sales revenue for every dollar invested in fixed assets during that period. This represents a strong efficiency in asset utilization.
Although there have been fluctuations in the fixed asset turnover ratio quarter to quarter, the overall trend appears to be relatively stable. This consistency suggests that ITT Inc has been effectively managing its fixed assets to drive sales growth.
In conclusion, the fixed asset turnover ratios for ITT Inc indicate a consistent and efficient use of fixed assets to generate sales revenue over the past eight quarters. It is crucial for the company to continue monitoring and managing its fixed assets effectively to maintain and potentially improve its efficiency in the future.
Peer comparison
Dec 31, 2023