Myers Industries Inc (MYE)

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	813,105	834,363	864,613	889,454	899,773	887,215	859,353	814,341	762,817	700,469	632,519	562,548	510,376	489,727	482,938	498,884	515,785	537,355	546,887	553,041
Property, plant and equipment	US$ in thousands	107,933	106,936	106,635	105,803	101,566	97,898	94,945	92,204	92,049	90,496	83,981	83,220	73,953	53,945	54,328	54,038	54,964	56,096	57,216	59,334
Fixed asset turnover		7.53	7.80	8.11	8.41	8.86	9.06	9.05	8.83	8.29	7.74	7.53	6.76	6.90	9.08	8.89	9.23	9.38	9.58	9.56	9.32

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $813,105K ÷ $107,933K
= 7.53

Myers Industries Inc.'s fixed asset turnover has shown a consistent downward trend from Q1 2022 to Q4 2023. The fixed asset turnover ratio measures the efficiency with which the company generates sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is efficiently using its fixed assets to generate revenue.

The declining trend in fixed asset turnover suggests that Myers Industries Inc. may be experiencing challenges in effectively utilizing its fixed assets to generate sales. This could be a result of various factors such as underutilization of assets, inefficient production processes, or declining sales relative to the value of fixed assets.

It is important for the company to closely monitor and address the declining fixed asset turnover ratio to improve operational efficiency and maximize returns on its investment in fixed assets. By identifying and addressing the underlying factors contributing to this trend, Myers Industries Inc. can work towards improving its profitability and overall financial performance.