Quanex Building Products (NX)
Fixed asset turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,130,580 | 1,221,500 | 1,072,150 | 851,573 | 893,841 |
| Property, plant and equipment | US$ in thousands | 250,664 | 180,400 | 178,630 | 184,104 | 193,600 |
| Fixed asset turnover | 4.51 | 6.77 | 6.00 | 4.63 | 4.62 |
October 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,130,580K ÷ $250,664K
= 4.51
Fixed asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its investment in fixed assets, such as property, plant, and equipment. In the case of Quanex Building Products Corp, the trend in fixed asset turnover over the past five years can provide valuable insights into the company's operational efficiency and utilization of its fixed assets.
The fixed asset turnover ratio for Quanex Building Products Corp has exhibited some fluctuations over the last five years. In 2019, the fixed asset turnover ratio was 4.62, indicating that the company generated $4.62 in sales for every dollar invested in fixed assets. This ratio remained relatively stable in 2020 at 4.63 before experiencing a significant increase to 6.00 in 2021, reflecting a notable improvement in the company's ability to utilize its fixed assets to generate sales revenue.
The trend continued as the fixed asset turnover ratio further improved to 6.77 in 2022, indicating that Quanex Building Products Corp effectively generated $6.77 in sales for every dollar invested in fixed assets. This represented a substantial increase in operational efficiency and asset utilization. However, in 2023, the fixed asset turnover ratio decreased to 4.51, indicating a decline in the company's ability to efficiently utilize its fixed assets to generate sales revenue compared to the previous year.
Overall, the trend in fixed asset turnover suggests that Quanex Building Products Corp experienced a significant improvement in operational efficiency and the utilization of fixed assets from 2020 to 2022. However, the decrease in 2023 raises concerns about the company's ability to maintain high levels of asset utilization and operational efficiency. Further analysis and additional information on the company's investment in fixed assets and sales revenue are necessary to understand the underlying reasons for these fluctuations and to assess the company's future performance.
Peer comparison
Oct 31, 2023