Kaiser Aluminum Corporation (KALU)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,053,900 | 3,385,100 | 2,537,100 | 1,133,600 | 1,473,600 |
| Property, plant and equipment | US$ in thousands | 1,052,100 | 1,013,200 | 955,200 | 627,200 | 622,000 |
| Fixed asset turnover | 2.90 | 3.34 | 2.66 | 1.81 | 2.37 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,053,900K ÷ $1,052,100K
= 2.90
The fixed asset turnover ratio measures how efficiently Kaiser Aluminum Corp generates revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate sales.
Analyzing the trend over the past five years, we observe fluctuations in Kaiser Aluminum Corp's fixed asset turnover ratio. The ratio was 2.44 in 2019, increased to 1.87 in 2020, and further improved to 2.76 in 2021. However, there was a decrease in 2022 to 3.38, followed by a decrease again to 2.93 in 2023.
The decrease in fixed asset turnover from 2022 to 2023 could be attributed to various factors such as changes in sales volume, pricing strategies, or changes in the composition of fixed assets. While the general trend has been fluctuating, it is essential for Kaiser Aluminum Corp to closely monitor and manage its fixed asset turnover to ensure optimal utilization of its fixed asset base to drive revenue generation.
Peer comparison
Dec 31, 2023