Koppers Holdings Inc (KOP)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,083,200 | 1,935,700 | 1,638,100 | 1,620,200 | 1,710,300 |
| Property, plant and equipment | US$ in thousands | 631,700 | 557,300 | 489,100 | 409,100 | 358,800 |
| Fixed asset turnover | 3.30 | 3.47 | 3.35 | 3.96 | 4.77 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,083,200K ÷ $631,700K
= 3.30
The fixed asset turnover ratio measures how efficiently a company generates sales revenue from its investment in fixed assets. A higher ratio indicates that the company is more effectively utilizing its fixed assets to generate sales.
In the case of Koppers Holdings Inc, the fixed asset turnover ratio has ranged from 3.41 to 4.27 over the past five years. The trend shows a slight decline from 2019 to 2023. This indicates that, on average, for each dollar invested in fixed assets, Koppers generated $3.41 to $4.27 in sales revenue during these years.
The declining trend in the fixed asset turnover ratio over the years may suggest that Koppers Holdings Inc is becoming less efficient in utilizing its fixed assets to generate sales. This could be due to factors such as aging equipment, underutilization of assets, or a change in the company's business model.
Further analysis of Koppers Holdings Inc's operational efficiency, asset management policies, and investment in fixed assets would be necessary to determine the underlying reasons for the change in fixed asset turnover.
Peer comparison
Dec 31, 2023