Kadant Inc (KAI)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,050,980 | 950,662 | 896,492 | 782,025 | 627,794 |
| Property, plant and equipment | US$ in thousands | 168,348 | 138,755 | 238,390 | 220,434 | 84,642 |
| Fixed asset turnover | 6.24 | 6.85 | 3.76 | 3.55 | 7.42 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,050,980K ÷ $168,348K
= 6.24
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales from its fixed assets. A higher fixed asset turnover is generally considered favorable as it indicates that the company is generating more revenue relative to its investment in fixed assets.
Analyzing Kadant Inc's fixed asset turnover over the past five years, we observe fluctuations in the ratio. In 2020, the company had a high fixed asset turnover of 7.42, suggesting efficient utilization of its fixed assets to generate sales. However, this ratio decreased significantly to 3.55 in 2021, indicating a potential decrease in sales generated from fixed assets.
Subsequently, the fixed asset turnover improved slightly in 2022 to 3.76 and further increased in 2023 to 6.85, indicating better efficiency in generating sales from fixed assets during these years. However, in 2024, the fixed asset turnover declined to 6.24, but still remained higher than the levels seen in 2021 and 2022.
Overall, fluctuations in Kadant Inc's fixed asset turnover indicate varying levels of efficiency in utilizing fixed assets to generate sales over the years. Further analysis of the company's financial performance and operational strategies may provide insights into the factors influencing these fluctuations.
Peer comparison
Dec 31, 2024