Materion Corporation (MTRN)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,648,800 | 1,633,630 | 1,735,870 | 1,504,450 | 1,174,500 |
| Property, plant and equipment | US$ in thousands | 510,805 | 514,683 | 448,765 | 408,975 | 309,686 |
| Fixed asset turnover | 3.23 | 3.17 | 3.87 | 3.68 | 3.79 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,648,800K ÷ $510,805K
= 3.23
The fixed asset turnover ratio of Materion Corporation has shown some fluctuations over the period from December 31, 2020, to December 31, 2024. The ratio was 3.79 in 2020, indicating that the company generated $3.79 in sales for every dollar invested in fixed assets. It decreased slightly to 3.68 in 2021 before rising to 3.87 in 2022, suggesting improved efficiency in utilizing fixed assets to generate revenue.
However, there was a notable decline in the fixed asset turnover ratio to 3.17 in 2023, indicating that the company was less effective in generating sales from its fixed assets during that period. The ratio then increased to 3.23 in 2024, showing a slight improvement in asset utilization compared to the previous year.
Overall, Materion Corporation's fixed asset turnover ratios have varied over the years, with some fluctuations in efficiency in converting fixed assets into revenue. It would be advisable for stakeholders to further investigate the factors contributing to these changes to assess the company's operational performance in utilizing its fixed assets.