NV5 Global Inc (NVEE)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,276,230 | 1,126,510 | 1,010,090 | 941,231 | 506,663 |
| Property, plant and equipment | US$ in thousands | 45,879 | 38,194 | 30,532 | 24,065 | 25,733 |
| Fixed asset turnover | 27.82 | 29.49 | 33.08 | 39.11 | 19.69 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,276,230K ÷ $45,879K
= 27.82
Fixed asset turnover is a financial ratio that measures how efficiently a company utilizes its fixed assets to generate revenue. It is calculated by dividing net sales by average fixed assets. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets.
For NV5 Global Inc, the fixed asset turnover ratio has been consistently high over the past five years, ranging from 19.69 in 2019 to 39.11 in 2020. This suggests that the company has been effectively utilizing its fixed assets to generate revenue. The decreasing trend from 2020 to 2023 may indicate a decrease in efficiency in utilizing fixed assets to generate revenue, but the absolute values are still relatively high compared to industry averages.
Overall, NV5 Global Inc's high fixed asset turnover ratios indicate that the company has been managing its fixed assets efficiently to generate revenue, although there may be room for improvement in recent years. It is essential for the company to monitor and optimize its fixed asset utilization to maintain or improve its financial performance in the future.
Peer comparison
Dec 31, 2023