nVent Electric PLC (NVT)
Fixed asset turnover
| Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,378,900 | 3,314,100 | 3,194,500 | 3,090,800 | 2,994,600 | 2,923,100 | 2,877,800 | 2,790,500 | 2,688,000 | 2,561,200 | 2,414,500 | 2,289,800 | 2,156,000 | 2,000,600 | 1,970,800 | 2,016,300 | 2,063,700 | 2,153,500 | 2,170,000 | 2,171,400 |
| Property, plant and equipment | US$ in thousands | 384,900 | 383,500 | 390,000 | 371,900 | 378,100 | 293,000 | 289,200 | 272,000 | 279,200 | 287,500 | 291,100 | 287,600 | 291,600 | 282,700 | 289,400 | 278,100 | 276,800 | 278,600 | 284,500 | 280,300 |
| Fixed asset turnover | 8.78 | 8.64 | 8.19 | 8.31 | 7.92 | 9.98 | 9.95 | 10.26 | 9.63 | 8.91 | 8.29 | 7.96 | 7.39 | 7.08 | 6.81 | 7.25 | 7.46 | 7.73 | 7.63 | 7.75 |
June 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,378,900K ÷ $384,900K
= 8.78
Fixed asset turnover measures how efficiently a company is utilizing its fixed assets to generate revenue. nVent Electric PLC's fixed asset turnover has been fluctuating over the past few quarters, ranging from 6.81 to 10.26.
The trend shows that the company's efficiency in generating revenue from its fixed assets has varied, with some quarters performing better than others. Generally, a higher fixed asset turnover indicates a more efficient use of fixed assets to generate sales. In this case, nVent Electric PLC's fixed asset turnover has been consistently relatively high, which suggests that the company is effectively utilizing its fixed assets to generate revenue.
However, it is important to note that a high fixed asset turnover ratio may also indicate aggressive asset management practices or a high reliance on asset-intensive operations. Therefore, while the high turnover ratio is a positive sign of efficiency, it should be analyzed in conjunction with other financial metrics to get a comprehensive understanding of the company's operational and financial performance.
Peer comparison
Jun 30, 2024