Mercer International Inc (MERC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,902,410 | 2,225,980 | 1,713,880 | 1,327,140 | 1,535,420 |
| Property, plant and equipment | US$ in thousands | 1,409,940 | 1,341,320 | 1,135,630 | 1,109,740 | 1,074,240 |
| Fixed asset turnover | 1.35 | 1.66 | 1.51 | 1.20 | 1.43 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,902,410K ÷ $1,409,940K
= 1.35
Mercer International Inc.'s fixed asset turnover has shown fluctuations over the past five years. The ratio ranged from 1.28 in 2020 to 1.70 in 2022, indicating that the company generated, on average, $1.41 in revenue for every dollar invested in fixed assets in 2023. The decrease in 2023 compared to 2022 suggests that the company may have been less efficient in utilizing its fixed assets to generate sales revenue. The trend from 2019 to 2022 shows an overall improvement in fixed asset turnover, which could indicate better asset utilization efficiency or increased sales generated per dollar of fixed assets during those years. Further analysis would be needed to determine the specific factors influencing these fluctuations in fixed asset turnover for Mercer International Inc.