KBR Inc (KBR)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,749,000 | 6,834,000 | 6,496,000 | 7,249,000 | 5,767,000 |
| Property, plant and equipment | US$ in thousands | 289,000 | 239,000 | 182,000 | 136,000 | 130,000 |
| Fixed asset turnover | 26.81 | 28.59 | 35.69 | 53.30 | 44.36 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,749,000K ÷ $289,000K
= 26.81
The fixed asset turnover ratio measures the efficiency with which KBR Inc generates sales revenue from its investment in fixed assets. The trend analysis of fixed asset turnover for KBR Inc from December 31, 2020, to December 31, 2024, shows a fluctuating pattern.
Starting at 44.36 in December 2020, the fixed asset turnover increased to 53.30 in December 2021, indicating an improvement in the company's ability to generate sales from its fixed assets. However, there was a notable decrease in the ratio to 35.69 in December 2022, suggesting a potential decrease in efficiency in utilizing fixed assets to generate revenue.
Further declining trends are seen in December 2023 and December 2024, with fixed asset turnover ratios of 28.59 and 26.81 respectively. These decreasing ratios could indicate challenges in effectively utilizing fixed assets to drive sales growth or possibly a significant increase in fixed asset base relative to revenue generated.
It is essential for KBR Inc to strategically manage its fixed asset investments to enhance operational efficiency and maximize the utilization of assets to drive revenue generation. Periodic evaluation and adjustments in capital expenditures and operational strategies may be required to improve the fixed asset turnover ratio and overall financial performance.
Peer comparison
Dec 31, 2024