Masco Corporation (MAS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,861,000 | 8,568,000 | 7,915,000 | 7,636,000 | 6,846,000 |
| Property, plant and equipment | US$ in thousands | 1,121,000 | 975,000 | 896,000 | 908,000 | 878,000 |
| Fixed asset turnover | 7.01 | 8.79 | 8.83 | 8.41 | 7.80 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,861,000K ÷ $1,121,000K
= 7.01
Masco Corp.'s fixed asset turnover ratio has shown variability over the past five years. The trend indicates a general decline from 2018 to 2023, with a peak of 9.35 in 2021 followed by a gradual decrease to 7.11 in 2023. An ideal fixed asset turnover ratio should be high, as it reflects the company's ability to generate revenue from its investments in fixed assets. The decreasing trend in Masco Corp.'s fixed asset turnover suggests a decrease in sales generated per dollar of fixed assets invested, which may indicate inefficiencies in asset utilization or pricing strategies. Further investigation into the company's operations and financial performance is recommended to identify the underlying factors contributing to the declining fixed asset turnover ratio.
Peer comparison
Dec 31, 2023