Owens Corning Inc (OC)
Fixed asset turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,599,000 | 9,515,000 | 9,565,000 | 9,603,000 | 9,618,000 | 9,473,000 | 9,157,000 | 8,795,000 | 8,364,000 | 8,166,000 | 7,857,000 | 7,243,000 | 6,929,000 | 6,822,000 | 6,801,000 | 7,094,000 | 7,160,000 | 7,192,000 | 7,127,000 | 7,033,000 |
| Property, plant and equipment | US$ in thousands | 3,841,000 | 3,688,000 | 3,723,000 | 3,745,000 | 3,729,000 | 3,660,000 | 3,684,000 | 3,825,000 | 3,873,000 | 3,767,000 | 3,791,000 | 3,758,000 | 3,809,000 | 3,717,000 | 3,716,000 | 3,747,000 | 3,855,000 | 3,759,000 | 3,802,000 | 3,776,000 |
| Fixed asset turnover | 2.50 | 2.58 | 2.57 | 2.56 | 2.58 | 2.59 | 2.49 | 2.30 | 2.16 | 2.17 | 2.07 | 1.93 | 1.82 | 1.84 | 1.83 | 1.89 | 1.86 | 1.91 | 1.87 | 1.86 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $9,599,000K ÷ $3,841,000K
= 2.50
Owens Corning's fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 2.33 to 2.62. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio indicates better asset utilization.
The company's fixed asset turnover ratio has been consistently above 2, indicating that Owens Corning is generating revenue efficiently from its investment in fixed assets. The slight fluctuations in the ratio over the quarters suggest a consistent level of efficiency in asset utilization.
Overall, Owens Corning's stable and relatively high fixed asset turnover ratio demonstrates effective management of its fixed assets to generate revenue, which is a positive indicator of operational efficiency and profitability.