Newell Brands Inc (NWL)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,824,000 | 9,305,000 | 10,336,000 | 9,059,000 | 9,688,100 |
| Property, plant and equipment | US$ in thousands | 1,212,000 | 1,182,000 | 1,204,000 | 1,176,000 | 1,155,000 |
| Fixed asset turnover | 6.46 | 7.87 | 8.58 | 7.70 | 8.39 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,824,000K ÷ $1,212,000K
= 6.46
The fixed asset turnover ratio for Newell Brands Inc has shown a decreasing trend over the past five years. The ratio was highest in 2021 at 8.79, indicating that the company generated $8.79 in sales for every dollar invested in fixed assets. However, by the end of 2023, the ratio had declined to 6.71, suggesting a decrease in efficiency in utilizing fixed assets to generate revenue.
Although the ratio fluctuated slightly in the intervening years, the overall trend indicates a decline in the efficiency of the company's fixed asset utilization. This could be due to various factors, such as slower sales growth relative to fixed asset investments, inefficient asset management, or changes in the company's business operations impacting asset turnover.
A declining fixed asset turnover ratio may warrant further investigation into the company's operational performance and asset management strategies to identify opportunities for improvement and enhanced efficiency in utilizing fixed assets to drive revenue generation.
Peer comparison
Dec 31, 2023