NV5 Global Inc (NVEE)
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 | 1,259,381 | 1,179,473 | 1,145,347 | 1,121,586 | 1,126,509 | 1,091,459 | 1,072,465 | 1,048,555 | 1,010,092 | 967,430 | 949,570 | 930,193 | 941,447 | 619,405 | 583,798 | 552,757 | 507,709 | 490,455 | 463,578 | 439,429 |
| Property, plant and equipment | US$ in thousands | 45,879 | 49,930 | 49,392 | 49,438 | 38,194 | 39,116 | 37,340 | 34,046 | 30,532 | 26,910 | 26,725 | 26,255 | 24,065 | 25,513 | 26,823 | 27,759 | 25,733 | 12,349 | 12,129 | 11,586 |
| Fixed asset turnover | 27.45 | 23.62 | 23.19 | 22.69 | 29.49 | 27.90 | 28.72 | 30.80 | 33.08 | 35.95 | 35.53 | 35.43 | 39.12 | 24.28 | 21.76 | 19.91 | 19.73 | 39.72 | 38.22 | 37.93 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,259,381K ÷ $45,879K
= 27.45
Fixed asset turnover is a ratio that measures a company's ability to generate revenue from its investment in fixed assets. A higher fixed asset turnover indicates that the company is using its fixed assets efficiently to generate sales.
Analyzing the fixed asset turnover of NV5 Global Inc over the past 20 quarters reveals fluctuations in the efficiency of the company's fixed asset utilization. The ratio has ranged from a low of 19.73 to a high of 39.72 during this period.
The trend shows that the fixed asset turnover ratio has generally been on an upward trajectory since the end of 2019, reaching its peak in the fourth quarter of 2021. This indicates that NV5 Global Inc has been able to generate more revenue relative to its investment in fixed assets during this period.
It is important for the company to sustain or improve its fixed asset turnover ratio to ensure continued efficiency in asset utilization and maximize profitability. fluctuations in the ratio should be further analyzed to identify the underlying factors driving the changes and implement strategies to optimize fixed asset utilization.
Peer comparison
Dec 31, 2023