nVent Electric PLC (NVT)
Fixed asset turnover
| Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,297,200 | 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 |
| Property, plant and equipment | US$ in thousands | 335,800 | 384,900 | 383,500 | 319,900 | 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 |
| Fixed asset turnover | 9.82 | 8.78 | 8.64 | 9.99 | 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 |
September 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,297,200K ÷ $335,800K
= 9.82
nVent Electric PLC's fixed asset turnover ratio has been exhibiting a generally increasing trend over the past few years, which is a positive indication of the company's efficiency in generating sales from its fixed assets. The ratio has shown volatility on a quarterly basis, ranging from a low of 6.81 to a high of 10.26, with a current value of 9.82 as of September 30, 2024.
The upward trend in the fixed asset turnover ratio suggests that nVent Electric PLC has been utilizing its fixed assets effectively to generate revenue. A higher fixed asset turnover ratio indicates that the company is optimizing its asset utilization and efficiently managing its fixed assets to generate sales.
However, the quarterly fluctuations in the ratio indicate that there may be seasonal factors or fluctuations in the business that impact the level of revenue generated from fixed assets in certain periods. It would be beneficial for the company to analyze these fluctuations further to identify any underlying causes and take appropriate actions to mitigate them.
Overall, the trend of an increasing fixed asset turnover ratio for nVent Electric PLC is a positive sign of efficient asset utilization and effective revenue generation from its fixed assets.
Peer comparison
Sep 30, 2024