Newmont Goldcorp Corp (NEM)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,635,000 | 11,807,000 | 12,171,000 | 11,286,000 | 9,673,000 |
| Property, plant and equipment | US$ in thousands | 37,032,000 | 24,073,000 | 24,124,000 | 24,281,000 | 25,276,000 |
| Fixed asset turnover | 0.31 | 0.49 | 0.50 | 0.46 | 0.38 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,635,000K ÷ $37,032,000K
= 0.31
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is more efficient in utilizing its fixed assets to generate revenue.
Looking at Newmont Corp’s fixed asset turnover ratio over the past five years, we observe a fluctuating trend. The ratio decreased from 0.39 in 2019 to 0.31 in 2023, indicating a decrease in the efficiency of generating sales from fixed assets during this period.
In 2020, there was a slight improvement in the fixed asset turnover ratio to 0.47, followed by a further increase to 0.51 in 2021, signaling an improvement in utilizing fixed assets to generate sales revenue. However, this improvement was not sustained as the ratio dropped to 0.49 in 2022 and further to 0.31 in 2023.
The declining trend in Newmont Corp’s fixed asset turnover ratio over the past two years may raise concerns about the company's efficiency in utilizing its fixed assets to generate sales. It is essential for the company to closely monitor and improve its asset management strategies to enhance efficiency and profitability in the future.