Mercer International Inc (MERC)

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	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,902,412	2,022,817	2,095,191	2,150,228	2,225,984	2,170,471	2,102,894	1,921,045	1,713,879	1,611,455	1,462,773	1,394,244	1,358,964	1,291,941	1,356,264	1,439,936	1,568,676	1,576,750	1,533,582	1,482,235
Property, plant and equipment	US$ in thousands	1,409,940	1,396,750	1,431,020	1,348,560	1,341,320	1,249,060	1,095,340	1,130,340	1,135,630	1,141,300	1,133,290	1,099,410	1,109,740	1,065,340	1,040,170	1,020,340	1,074,240	1,009,640	1,031,700	1,021,960
Fixed asset turnover		1.35	1.45	1.46	1.59	1.66	1.74	1.92	1.70	1.51	1.41	1.29	1.27	1.22	1.21	1.30	1.41	1.46	1.56	1.49	1.45

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,902,412K ÷ $1,409,940K
= 1.35

Mercer International Inc.'s fixed asset turnover has shown a declining trend over the past four quarters, with the ratio decreasing from 1.70 in Q4 2022 to 1.41 in Q4 2023. This suggests that the company is generating $1.41 in revenue for every $1 in fixed assets during Q4 2023, indicating a decrease in efficiency in utilizing fixed assets to generate sales. Despite this decline, the company's fixed asset turnover has remained above 1.0 in all quarters, indicating that Mercer International Inc. is effectively using its fixed assets to generate revenue. The significant fluctuations in the fixed asset turnover ratio may warrant further investigation into the company's asset management strategies and capital expenditure decisions.