Lancaster Colony Corporation (LANC)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,871,720 | 1,822,640 | 1,676,360 | 1,466,850 | 1,334,000 |
| Property, plant and equipment | US$ in thousands | 477,696 | 482,206 | 451,368 | 364,622 | 293,288 |
| Fixed asset turnover | 3.92 | 3.78 | 3.71 | 4.02 | 4.55 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,871,720K ÷ $477,696K
= 3.92
Lancaster Colony Corporation's fixed asset turnover has shown a decreasing trend over the past five years, starting at 4.55 in 2020 and declining to 3.92 in 2024. This ratio measures the efficiency with which the company is generating revenue from its fixed assets. A higher fixed asset turnover indicates that the company is utilizing its fixed assets more effectively to generate sales.
Although the ratio has fluctuated over the years, the general trend suggests that Lancaster Colony Corporation has become slightly less efficient in generating revenue from its fixed assets. This could be due to various factors, such as changes in the company's asset base, operational efficiency, or sales performance.
It is important for the company to closely monitor its fixed asset turnover and identify opportunities to improve the efficiency of its asset utilization to drive profitability and sustainable growth in the future.
Peer comparison
Jun 30, 2024