Newell Brands Inc (NWL)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,582,000 | 8,133,000 | 9,459,000 | 10,589,000 | 9,385,000 |
| Property, plant and equipment | US$ in thousands | — | — | 1,762,000 | 1,762,000 | 1,176,000 |
| Fixed asset turnover | — | — | 5.37 | 6.01 | 7.98 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,582,000K ÷ $—K
= —
Newell Brands Inc's fixed asset turnover ratio has shown a declining trend over the last few years. In December 31, 2020, the fixed asset turnover was at 7.98, indicating that the company generated $7.98 in sales for every dollar invested in fixed assets. However, this ratio decreased to 6.01 in December 31, 2021, and further dropped to 5.37 in December 31, 2022.
The absence of data for December 2023 and December 2024 makes it challenging to determine the exact trend for those years. Generally, a declining fixed asset turnover ratio may suggest that either the company's sales are decreasing relative to its fixed assets, or there has been significant investment in fixed assets without proportionate growth in sales.
It is essential for Newell Brands Inc to monitor and analyze the reasons behind the declining fixed asset turnover ratio to ensure optimal utilization of its fixed assets and improve efficiency in generating sales from its asset base. Companies often aim to strike a balance between investing in fixed assets to support growth and ensuring that those assets are being effectively utilized to generate revenue.
Peer comparison
Dec 31, 2024