Mister Car Wash Inc (MCW)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 851,841 | 835,560 | 692,541 |
| Property, plant and equipment | US$ in thousands | 725,121 | 560,874 | 472,448 |
| Fixed asset turnover | 1.17 | 1.49 | 1.47 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $851,841K ÷ $725,121K
= 1.17
The fixed asset turnover ratio for Mister Car Wash Inc has been declining over the past three years. The ratio decreased from 1.61 in 2021 to 1.56 in 2022, and further decreased to 1.28 in 2023. This indicates that the company is generating less revenue for every dollar invested in fixed assets. A decreasing trend in fixed asset turnover may suggest inefficiencies in utilizing fixed assets to generate sales, potentially signaling underutilization or obsolescence of assets. Mister Car Wash Inc may need to assess its fixed asset management strategies and consider optimizing asset utilization to improve overall operational efficiency and profitability in the long term.
Peer comparison
Dec 31, 2023