Kirby Corporation (KEX)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,047,860	2,748,750	2,210,980	2,171,410	2,838,400
Property, plant and equipment	US$ in thousands	3,861,100	3,633,460	3,678,520	3,917,070	3,777,110
Fixed asset turnover		0.79	0.76	0.60	0.55	0.75

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,047,860K ÷ $3,861,100K
= 0.79

Fixed asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more efficiently to generate sales.

In the case of Kirby Corp., the trend in fixed asset turnover over the past five years shows fluctuations. The ratio increased from 0.75 in 2019 to 0.80 in 2023, with some variability in between.

The improvement in fixed asset turnover from 2019 to 2023 suggests that Kirby Corp. has been able to generate more sales revenue from its fixed assets over time. This could indicate enhanced operational efficiency and better utilization of fixed assets in the company's core business activities.

However, it is essential to further investigate the reasons behind these fluctuations and assess whether any strategic changes or operational improvements have contributed to the varying fixed asset turnover ratios. Additionally, comparing Kirby Corp.'s fixed asset turnover ratio with industry benchmarks or competitors can provide valuable insights into its operational efficiency and asset utilization relative to its peers.