KBR Inc (KBR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,834,000 | 6,496,000 | 7,249,000 | 5,767,000 | 5,639,000 |
| Property, plant and equipment | US$ in thousands | 239,000 | 182,000 | 136,000 | 130,000 | 130,000 |
| Fixed asset turnover | 28.59 | 35.69 | 53.30 | 44.36 | 43.38 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,834,000K ÷ $239,000K
= 28.59
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is more efficient in utilizing its fixed assets to generate sales.
Looking at the trend of KBR Inc's fixed asset turnover over the past five years, we can see a decreasing pattern. In 2023, the fixed asset turnover ratio decreased to 28.59 from 35.69 in 2022. This decline suggests that KBR Inc is becoming less efficient in utilizing its fixed assets to generate sales revenue.
Comparing the latest ratio to the ratios from earlier years, we can observe a significant drop from 53.30 in 2021 to 44.36 in 2020 and further down to 43.38 in 2019. This downward trend indicates a consistent decrease in the efficiency of KBR Inc in generating sales from its fixed assets over the years.
Overall, the declining trend of KBR Inc's fixed asset turnover ratio raises concerns about the company's ability to efficiently utilize its fixed assets to generate sales revenue. Further analysis and investigation into the factors contributing to this trend may be necessary to address potential operational inefficiencies.
Peer comparison
Dec 31, 2023