Kadant Inc (KAI)
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 | 1,050,980 | 1,018,692 | 994,700 | 967,892 | 950,662 | 940,848 | 921,395 | 898,831 | 896,492 | 886,251 | 861,715 | 835,956 | 782,025 | 731,855 | 686,323 | 642,488 | 627,800 | 643,346 | 660,835 | 683,520 |
| Property, plant and equipment | US$ in thousands | 168,348 | 320,460 | 313,237 | 305,866 | 138,755 | 257,154 | 254,430 | 246,028 | 238,390 | 221,731 | 222,531 | 222,762 | 220,434 | 110,088 | 81,757 | 82,204 | 84,642 | 82,427 | 82,242 | 83,748 |
| Fixed asset turnover | 6.24 | 3.18 | 3.18 | 3.16 | 6.85 | 3.66 | 3.62 | 3.65 | 3.76 | 4.00 | 3.87 | 3.75 | 3.55 | 6.65 | 8.39 | 7.82 | 7.42 | 7.81 | 8.04 | 8.16 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,050,980K ÷ $168,348K
= 6.24
Fixed asset turnover is a financial ratio used to evaluate a company's efficiency in generating sales from its fixed assets. Kadant Inc's fixed asset turnover has shown fluctuations over the periods analyzed. The ratio stood at a high of 8.39 as of June 30, 2021, indicating that Kadant Inc generated $8.39 in revenue for every dollar invested in fixed assets at that time.
However, the ratio declined significantly to 3.16 as of March 31, 2024, and remained relatively stable around this level for the following quarters. This downward trend suggests that Kadant Inc may be experiencing challenges in utilizing its fixed assets efficiently to generate sales.
It is essential for Kadant Inc to monitor and manage its fixed asset turnover effectively to ensure optimal utilization of its assets and enhance overall operational performance and profitability. Further analysis and actions may be necessary to address the declining trend and improve the company's efficiency in generating sales from its fixed assets.
Peer comparison
Dec 31, 2024