Knowles Cor (KN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 707,600 | 764,700 | 868,100 | 764,300 | 854,800 |
| Property, plant and equipment | US$ in thousands | 175,400 | 161,800 | 200,800 | 191,500 | 206,500 |
| Fixed asset turnover | 4.03 | 4.73 | 4.32 | 3.99 | 4.14 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $707,600K ÷ $175,400K
= 4.03
The fixed asset turnover ratio measures how efficiently a company generates revenue from its investment in fixed assets. It indicates the amount of revenue generated for each dollar invested in fixed assets.
Analyzing the trend in Knowles Corp's fixed asset turnover ratio over the past five years, we can observe fluctuations. In 2023, the fixed asset turnover ratio decreased to 4.03 from 4.73 in 2022, indicating that the company generated less revenue per dollar invested in fixed assets. This could be due to a decrease in sales relative to fixed asset investments or an increase in fixed asset base without a corresponding increase in revenue.
Comparatively, the industry average fixed asset turnover ratio should be considered to provide context for evaluating Knowles Corp's performance. It is important to assess the company's fixed asset utilization efficiency and how it compares to industry peers or historical performance to gain a comprehensive understanding of its operational effectiveness.
Peer comparison
Dec 31, 2023