Callaway Golf Company (MODG)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,200,300 | 4,152,800 | 4,099,400 | 4,064,800 | 4,100,200 | 4,077,300 | 4,031,900 | 3,983,500 | 3,879,900 | 3,753,324 | 3,642,683 | 3,454,542 | 3,079,082 | 2,741,987 | 2,377,880 | 1,771,541 | 1,562,865 | 1,500,177 | 1,433,952 | 1,585,033 |
| Property, plant and equipment | US$ in thousands | 2,219,000 | 2,215,500 | 2,185,000 | 2,167,600 | 2,156,500 | 2,083,100 | 2,003,100 | 1,914,200 | 1,809,600 | 1,676,500 | 1,600,100 | 1,534,500 | 1,451,400 | 1,330,330 | 1,264,890 | 1,192,280 | 146,495 | 145,758 | 149,618 | 150,969 |
| Fixed asset turnover | 1.89 | 1.87 | 1.88 | 1.88 | 1.90 | 1.96 | 2.01 | 2.08 | 2.14 | 2.24 | 2.28 | 2.25 | 2.12 | 2.06 | 1.88 | 1.49 | 10.67 | 10.29 | 9.58 | 10.50 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,200,300K ÷ $2,219,000K
= 1.89
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio indicates that the company is effectively using its fixed assets to generate revenue.
Analyzing Callaway Golf Company's fixed asset turnover over the past few years, we can see fluctuations in the ratio. From March 31, 2020, to December 31, 2021, the fixed asset turnover ratio steadily increased from 10.50 to 10.67, indicating an improvement in the company's efficiency in utilizing its fixed assets.
However, from March 31, 2021, to December 31, 2024, there was a noticeable decline in the fixed asset turnover ratio. The ratio dropped significantly from 2.12 on December 31, 2021, to 1.89 on December 31, 2024. This decline may suggest that Callaway Golf Company's fixed assets are not generating revenue as effectively as in the previous periods.
Overall, it is important for Callaway Golf Company to closely monitor its fixed asset turnover ratio and assess the efficiency of its fixed asset utilization to ensure optimal performance and profitability in the future.
Peer comparison
Dec 31, 2024