Matson Inc (MATX)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,081,800	4,326,500	3,903,500	2,353,100	2,182,000
Property, plant and equipment	US$ in thousands	2,089,900	1,962,500	1,878,300	1,689,900	1,598,100
Fixed asset turnover		1.47	2.20	2.08	1.39	1.37

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,081,800K ÷ $2,089,900K
= 1.47

Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its investment in fixed assets. It indicates how efficiently the company is utilizing its fixed assets to generate sales.

Analyzing the trend in Matson Inc's fixed asset turnover ratio from 2019 to 2023, we observe fluctuations in the ratio over this period. In 2019, the ratio was 1.38, indicating that for every dollar invested in fixed assets, the company generated $1.38 in sales revenue. This ratio increased to 1.41 in 2020, suggesting a slight improvement in asset utilization efficiency.

However, in 2021, the fixed asset turnover ratio showed a notable improvement, reaching 2.09. This indicates that Matson Inc was able to generate $2.09 in sales for every dollar invested in fixed assets during that year, reflecting a significant increase in asset efficiency.

The trend continued in 2022, with the fixed asset turnover ratio further increasing to 2.21. This shows a continued improvement in the company's ability to generate sales from its fixed assets efficiently.

In 2023, the fixed asset turnover ratio decreased to 1.48, indicating a decline compared to the previous year. Although lower than in 2022, the ratio still reflects a relatively efficient utilization of fixed assets to generate sales revenue.

Overall, the fluctuation in Matson Inc's fixed asset turnover ratio over the years indicates varying levels of efficiency in utilizing its fixed assets to generate sales revenue. Investors and analysts may further investigate the reasons behind these fluctuations to assess the company's operational efficiency and asset management strategies.