Mister Car Wash Inc (MCW)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 851,841 | 842,355 | 836,825 | 833,041 | 835,560 | 795,145 | 774,865 | 742,576 | |||
| Property, plant and equipment | US$ in thousands | 725,121 | 660,733 | 595,537 | 596,695 | 560,874 | 514,357 | 521,874 | 487,897 | 472,448 | 300,676 | 279,605 |
| Fixed asset turnover | 1.17 | 1.27 | 1.41 | 1.40 | 1.49 | 1.55 | 1.48 | 1.52 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $851,841K ÷ $725,121K
= 1.17
Fixed asset turnover is a key ratio that measures a company's efficiency in generating revenue from its investment in fixed assets. Mister Car Wash Inc's fixed asset turnover has shown a decreasing trend over the past five quarters, declining from 1.56 in Q4 2022 to 1.28 in Q4 2023. This indicates that the company is generating less revenue for every dollar invested in fixed assets.
A fixed asset turnover ratio below 1 may suggest that the company is not utilizing its fixed assets efficiently to generate sales. While a higher ratio generally indicates better asset utilization, a continuous decline in the ratio could signify potential inefficiencies in the company's operations or a decrease in the productivity of its fixed assets.
It is important for Mister Car Wash Inc to closely monitor its fixed asset turnover and assess the reasons behind the decreasing trend. Evaluating the company's operational efficiency, asset management practices, and overall business performance can help identify areas for improvement and optimize the utilization of fixed assets to enhance financial performance.
Peer comparison
Dec 31, 2023