NewMarket Corporation (NEU)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,657,060	2,718,050	2,315,890	1,998,090	2,157,050
Property, plant and equipment	US$ in thousands	654,747	659,998	676,770	665,147	635,439
Fixed asset turnover		4.06	4.12	3.42	3.00	3.39

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,657,060K ÷ $654,747K
= 4.06

The fixed asset turnover ratio for NewMarket Corp. has been fluctuating over the past five years. The ratio indicates how efficiently the company generates net sales revenue from its investment in fixed assets.

In 2023, the fixed asset turnover ratio was 4.12, slightly lower than the previous year's ratio of 4.19. This suggests that the company generated $4.12 in sales for every dollar invested in fixed assets in 2023.

Comparing this to earlier years, there has been an increasing trend in the fixed asset turnover ratio from 3.02 in 2020 to 4.19 in 2022, indicating a significant improvement in asset utilization efficiency during those years.

However, the ratio decreased to 3.48 in 2021 before rebounding in 2022. It is worth noting that the current ratio of 4.12 in 2023 is still higher than the ratios in 2020 and 2019, showing a positive trend in recent years.

Overall, the company has shown some fluctuations in its fixed asset turnover ratio but has generally improved its efficiency in utilizing fixed assets to generate sales revenue over the past five years.