Quanex Building Products (NX)
Fixed asset turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,277,860 | 1,130,580 | 1,221,500 | 1,072,150 | 851,573 |
| Property, plant and equipment | US$ in thousands | 402,466 | 250,664 | 180,400 | 178,630 | 184,104 |
| Fixed asset turnover | 3.18 | 4.51 | 6.77 | 6.00 | 4.63 |
October 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,277,860K ÷ $402,466K
= 3.18
The fixed asset turnover ratio for Quanex Building Products has been fluctuating over the past five years. The ratio measures the efficiency of the company in generating sales from its investment in fixed assets.
In 2024, the fixed asset turnover ratio was 3.18, indicating that the company generated $3.18 in sales for every $1 invested in fixed assets. This represents a decrease from the previous year's ratio of 4.51 in 2023.
The trend over the five-year period shows that the ratio peaked at 6.77 in 2022, suggesting that the company was highly efficient in utilizing its fixed assets to generate sales. However, the ratio dropped to 6.00 in 2021 and further decreased to 4.63 in 2020.
Overall, the fluctuation in the fixed asset turnover ratio may indicate changes in the company's asset utilization efficiency and sales performance. Further analysis would be necessary to understand the factors driving these fluctuations and their impact on the company's overall financial performance.
Peer comparison
Oct 31, 2024