ODP Corp (ODP)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,990,000 | 7,831,000 | 8,491,000 | 8,465,000 | 9,710,000 |
| Property, plant and equipment | US$ in thousands | — | — | 352,000 | 477,000 | 576,000 |
| Fixed asset turnover | — | — | 24.12 | 17.75 | 16.86 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,990,000K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. Looking at the data provided for ODP Corp over the years, we observe a consistent increase in the fixed asset turnover ratio.
In December 31, 2020, the fixed asset turnover ratio was 16.86, signifying that for every dollar invested in fixed assets, the company generated $16.86 in revenue. This ratio improved to 17.75 by December 31, 2021, indicating a more effective utilization of fixed assets to generate revenue.
A significant jump in efficiency was noted by December 31, 2022, with the fixed asset turnover ratio reaching 24.12. This suggests that the company significantly improved its ability to generate revenue from its fixed assets compared to the previous years.
The absence of data for December 31, 2023, and December 31, 2024, makes it challenging to provide a comprehensive analysis for those years. However, based on the trend observed from the available data, it seems that ODP Corp has been effectively leveraging its fixed assets to drive revenue growth.
Overall, the increasing trend in the fixed asset turnover ratio reflects positively on ODP Corp's operational efficiency and effectiveness in utilizing its fixed assets to generate revenue. This indicates potential improvements in productivity and profitability, showcasing a more robust financial performance over the years.
Peer comparison
Dec 31, 2024