Kenvue Inc. (KVUE)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | ||
|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 15,369,000 | 15,389,000 | 15,294,000 | 15,238,000 | 15,291,000 |
| Property, plant and equipment | US$ in thousands | 1,849,000 | 1,776,000 | 2,004,000 | 2,005,000 | 2,042,000 |
| Fixed asset turnover | 8.31 | 8.66 | 7.63 | 7.60 | 7.49 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,369,000K ÷ $1,849,000K
= 8.31
The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. In the case of Kenvue Inc., the fixed asset turnover ratio has shown a positive trend over the period under review.
As of December 31, 2023, the fixed asset turnover was at 7.49, indicating that the company generated $7.49 of revenue for every dollar invested in fixed assets. This ratio has steadily increased to 8.31 by December 31, 2024, suggesting an improvement in asset utilization efficiency.
The continuous growth in the fixed asset turnover ratio implies that Kenvue Inc. has been able to effectively leverage its fixed assets to generate sales revenue. This trend is generally positive as it signifies the company's ability to efficiently utilize its capital investments in fixed assets to drive revenue growth.
Overall, the increasing trend in the fixed asset turnover ratio for Kenvue Inc. reflects improved operational efficiency and better utilization of fixed assets to drive business performance.
Peer comparison
Dec 31, 2024