ODP Corp (ODP)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,812,000 | 8,477,000 | 8,439,000 | 9,660,000 | 10,561,000 |
| Property, plant and equipment | US$ in thousands | 359,000 | 352,000 | 477,000 | 542,000 | 679,000 |
| Fixed asset turnover | 21.76 | 24.08 | 17.69 | 17.82 | 15.55 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,812,000K ÷ $359,000K
= 21.76
ODP Corp's fixed asset turnover has shown a fluctuating trend over the past five years. The ratio indicates how efficiently the company generates sales revenue from its investment in fixed assets.
In 2023, the fixed asset turnover decreased to 21.76 from 24.08 in 2022. Despite this decrease, the company still managed to generate sales revenue more efficiently compared to 2021 and 2020 when the ratios were 17.69 and 17.82, respectively. The upward trend in 2022 followed by a slight decline in 2023 suggests that ODP Corp may have slightly underutilized its fixed assets in the most recent year.
Overall, the fixed asset turnover for ODP Corp has been generally healthy, indicating effective asset utilization and generating sales from its fixed assets. However, company management may want to monitor any significant changes in this ratio to ensure optimal utilization of fixed assets in the future.
Peer comparison
Dec 31, 2023