Lancaster Colony Corporation (LANC)
Fixed asset turnover
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,871,715 | 1,873,707 | 1,867,196 | 1,858,674 | 1,822,639 | 1,820,249 | 1,758,808 | 1,709,841 | 1,676,360 | 1,609,326 | 1,563,081 | 1,509,669 | 1,466,850 | 1,402,355 | 1,366,451 | 1,346,534 | 1,334,351 | 1,337,167 | 1,333,704 | 1,328,187 |
| Property, plant and equipment | US$ in thousands | 477,696 | 483,662 | 490,391 | 489,095 | 482,206 | 485,038 | 481,074 | 468,086 | 451,368 | 438,289 | 421,740 | 392,036 | 364,622 | 330,106 | 314,630 | 299,477 | 293,288 | 296,435 | 290,971 | 280,859 |
| Fixed asset turnover | 3.92 | 3.87 | 3.81 | 3.80 | 3.78 | 3.75 | 3.66 | 3.65 | 3.71 | 3.67 | 3.71 | 3.85 | 4.02 | 4.25 | 4.34 | 4.50 | 4.55 | 4.51 | 4.58 | 4.73 |
June 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,871,715K ÷ $477,696K
= 3.92
Fixed asset turnover measures the efficiency of a company in generating revenue from its fixed assets. It is calculated by dividing net sales by average fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
In the case of Lancaster Colony Corporation, the fixed asset turnover ratio has fluctuated over the past few years, ranging from a low of 3.65 to a high of 4.73. The company's fixed asset turnover has generally been above 3.5, indicating that Lancaster Colony is able to generate sales efficiently from its fixed assets.
It is important to note that a declining fixed asset turnover ratio could be a cause for concern as it might indicate inefficiency in asset utilization. On the other hand, a consistently high ratio could suggest that the company is effectively managing and utilizing its fixed assets to drive revenue growth.
Overall, Lancaster Colony Corporation's fixed asset turnover ratio has shown variability over the years, but has generally remained at healthy levels, indicating efficient utilization of its fixed assets to generate sales.
Peer comparison
Jun 30, 2024