Owens Corning Inc (OC)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 10,886,000 | 10,361,000 | 9,794,000 | 9,568,000 | 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 |
| Property, plant and equipment | US$ in thousands | 4,164,000 | 4,593,000 | 4,640,000 | 3,796,000 | 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 |
| Fixed asset turnover | 2.61 | 2.26 | 2.11 | 2.52 | 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 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $10,886,000K ÷ $4,164,000K
= 2.61
The fixed asset turnover ratio for Owens Corning Inc has shown a generally increasing trend over the period from March 31, 2020, to December 31, 2024. The ratio increased from 1.89 in March 2020 to 2.61 in December 2024. This indicates that the company is effectively utilizing its fixed assets to generate revenue.
There were fluctuations in the ratio over the period, with some quarters showing a slight decrease but overall maintaining an upward trajectory. Notable increases in fixed asset turnover were observed in the quarters ending March 31, 2021, to September 30, 2022, where the ratio consistently improved.
The highest fixed asset turnover ratio of 2.61 was recorded at the end of December 31, 2024, implying that Owens Corning Inc was generating $2.61 in revenue for every dollar invested in fixed assets. This indicates efficient management of fixed assets in generating sales revenue.
However, it is important to note the dip in the ratio in the quarter ending June 30, 2024, which could be a point of concern and requires further analysis to understand the reasons behind the decline. Overall, the increasing trend in fixed asset turnover reflects positively on the company's operational efficiency and ability to effectively utilize its fixed assets to drive revenue growth.