Keurig Dr Pepper Inc (KDP)

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	15,293,000	14,562,000	14,344,000	14,243,000	14,303,000	14,206,000	14,054,000	13,647,000	13,249,000	13,493,000	13,211,000	13,017,000	12,737,000	11,774,000	11,512,000	11,201,000	11,024,000	10,824,000	10,664,000	10,601,000
Property, plant and equipment	US$ in thousands	2,964,000	2,794,000	2,680,000	2,695,000	2,699,000	2,527,000	2,489,000	2,480,000	2,491,000	2,483,000	2,446,000	2,436,000	2,494,000	2,425,000	2,420,000	2,261,000	2,212,000	2,092,000	2,071,000	2,017,000
Fixed asset turnover		5.16	5.21	5.35	5.28	5.30	5.62	5.65	5.50	5.32	5.43	5.40	5.34	5.11	4.86	4.76	4.95	4.98	5.17	5.15	5.26

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,293,000K ÷ $2,964,000K
= 5.16

Keurig Dr Pepper Inc's fixed asset turnover ratio has exhibited a relatively stable trend over the analyzed period, ranging between 4.76 and 5.65. This ratio indicates the company's efficiency in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio is generally preferred as it signifies that the company is utilizing its fixed assets effectively to generate sales.

The company's fixed asset turnover ratio peaked at 5.65 on June 30, 2023, indicating that Keurig Dr Pepper Inc was able to generate $5.65 in revenue for every dollar invested in fixed assets at that time. This could signal effective management of fixed assets during that period, potentially through increased production efficiency or better asset utilization.

However, towards the end of the analyzed period, the fixed asset turnover ratio slightly declined to 5.16 on December 31, 2024. Although this drop may indicate a slight decrease in the efficiency of fixed asset utilization compared to previous periods, the ratio remained relatively stable overall.

Overall, Keurig Dr Pepper Inc's fixed asset turnover ratio suggests that the company has maintained a consistent level of efficiency in generating revenue from its fixed assets over the analyzed period, with occasional fluctuations observed. Further analysis in conjunction with other financial ratios and additional contextual information would provide a more comprehensive assessment of the company's operational performance and asset management.