Enpro Industries (NPO)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,013,100 | 1,067,900 | 1,259,100 | 1,052,000 | 1,171,800 |
| Property, plant and equipment | US$ in thousands | 193,800 | 185,200 | 184,300 | 195,000 | 218,800 |
| Fixed asset turnover | 5.23 | 5.77 | 6.83 | 5.39 | 5.36 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,013,100K ÷ $193,800K
= 5.23
The fixed asset turnover ratio measures a company's efficiency in generating sales revenue from its investment in fixed assets. Enpro Inc's fixed asset turnover over the past five years has demonstrated fluctuations. In 2023, the ratio decreased to 5.47 from 5.94 in 2022, indicating a slight decline in the company's ability to utilize its fixed assets to generate sales. However, the 2023 ratio is still relatively high compared to 2021 when it was 4.82. This implies that Enpro Inc has improved its efficiency in generating sales from fixed assets in 2023 compared to 2021.
Looking back further, the fixed asset turnover was also at a similar level in 2020 and 2019, both at 5.51. This suggests that the company has been consistent in its ability to generate sales from its fixed assets over these two years. Overall, Enpro Inc's fixed asset turnover has shown some variability in recent years, with a slight decrease in 2023 compared to the previous year but still maintaining a relatively high level of efficiency in utilizing fixed assets to drive sales.