Dorian LPG Ltd (LPG)
Fixed asset turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 560,717 | 389,749 | 274,221 | 315,939 | 333,430 |
| Property, plant and equipment | US$ in thousands | 1,232,420 | 1,263,980 | 1,254,520 | 1,377,180 | 1,437,840 |
| Fixed asset turnover | 0.45 | 0.31 | 0.22 | 0.23 | 0.23 |
March 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $560,717K ÷ $1,232,420K
= 0.45
The fixed asset turnover ratio for Dorian LPG Ltd has shown a positive trend over the past five years, indicating an improvement in efficiency in generating sales from its fixed assets.
The ratio has increased steadily from 0.23 in 2020 to 0.45 in 2024, which suggests that the company is utilizing its fixed assets more effectively to generate revenue. This improvement can be attributed to better asset management, operational efficiency, or strategic investments in fixed assets.
A fixed asset turnover ratio of 0.45 in 2024 means that for every dollar invested in fixed assets, Dorian LPG Ltd generated $0.45 in sales, indicating a more efficient use of its assets compared to previous years.
Overall, the increasing trend in fixed asset turnover reflects positively on Dorian LPG Ltd's operational performance and indicates a potential improvement in the company's overall profitability. However, it is important to consider other factors and ratios in conjunction with fixed asset turnover to gain a comprehensive understanding of the company's financial health and efficiency.