Callaway Golf Company (MODG)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,100,200 | 3,879,900 | 3,049,960 | 1,551,060 | 1,655,710 |
| Property, plant and equipment | US$ in thousands | 2,156,500 | 1,809,600 | 1,451,400 | 146,495 | 132,760 |
| Fixed asset turnover | 1.90 | 2.14 | 2.10 | 10.59 | 12.47 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,100,200K ÷ $2,156,500K
= 1.90
Fixed asset turnover measures how efficiently a company generates revenue from its investment in fixed assets. A higher fixed asset turnover indicates that a company is utilizing its fixed assets more efficiently to generate sales.
Looking at the trend of Topgolf Callaway Brands Corp's fixed asset turnover, we observe a decline from 12.81 in 2019 to 1.99 in 2023. This suggests a significant decrease in the efficiency of generating revenue from fixed assets over the past five years.
In 2020 and 2021, the fixed asset turnover remained relatively stable at 10.85 and 2.16 respectively, indicating a high level of efficiency in utilizing fixed assets to generate revenue during those periods.
However, in 2022 and 2023, the fixed asset turnover decreased further to 2.21 and 1.99 respectively. This decline may raise concerns about the company's ability to efficiently utilize its fixed assets to generate revenue.
Overall, the trend in fixed asset turnover for Topgolf Callaway Brands Corp indicates fluctuations in the efficiency of generating revenue from fixed assets over the past five years, with a noticeable decline in recent years. This trend may warrant further investigation into the company's asset management and operational efficiency.
Peer comparison
Dec 31, 2023