NewMarket Corporation (NEU)

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	2,657,060	2,693,036	2,722,787	2,764,467	2,718,052	2,610,742	2,535,924	2,401,221	2,315,892	2,282,767	2,176,308	1,998,315	1,990,356	1,997,020	2,039,447	2,191,264	2,167,555	2,171,422	2,177,951	2,215,662
Property, plant and equipment	US$ in thousands	654,747	649,968	655,864	658,092	659,998	653,231	663,462	671,327	676,770	677,481	680,315	671,955	665,147	648,685	639,344	633,873	635,439	623,961	629,724	633,009
Fixed asset turnover		4.06	4.14	4.15	4.20	4.12	4.00	3.82	3.58	3.42	3.37	3.20	2.97	2.99	3.08	3.19	3.46	3.41	3.48	3.46	3.50

December 31, 2023 calculation

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

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is effectively using its fixed assets to generate sales.

In the case of NewMarket Corp., the fixed asset turnover ratio has shown a generally increasing trend from Q1 2022 to Q4 2023, ranging from 3.65 to 4.26. This suggests that the company has been improving its efficiency in utilizing its fixed assets to generate revenue over this period.

The company's fixed asset turnover ratio has consistently been above 4, indicating that NewMarket Corp. is effectively utilizing its fixed assets to generate sales. This is a positive sign as it shows that the company is efficiently managing its fixed assets to drive revenue growth.

Overall, the trend of increasing fixed asset turnover ratio for NewMarket Corp. is a good indicator of the company's ability to efficiently leverage its fixed assets to generate sales, which can lead to improved profitability and financial performance.