ODP Corp (ODP)
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 | 6,992,000 | 7,174,000 | 7,403,000 | 7,594,000 | 7,831,000 | 8,131,000 | 8,294,000 | 8,420,000 | 8,490,000 | 8,426,000 | 8,433,000 | 8,685,000 | 8,873,000 | 9,119,000 | 9,479,000 | 9,351,000 | 9,710,000 | 9,930,000 | 10,173,000 | 10,603,000 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | — | 1,240,000 | 345,000 | 352,000 | 355,000 | 461,000 | 466,000 | 477,000 | 492,000 | 1,586,000 | 546,000 | 576,000 | 602,000 | 612,000 | 651,000 |
| Fixed asset turnover | — | — | — | — | — | — | 6.69 | 24.41 | 24.12 | 23.74 | 18.29 | 18.64 | 18.60 | 18.53 | 5.98 | 17.13 | 16.86 | 16.50 | 16.62 | 16.29 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,992,000K ÷ $—K
= —
Fixed asset turnover indicates how efficiently a company is using its fixed assets to generate sales. Looking at the data provided for ODP Corp's fixed asset turnover over multiple quarters, we observe a relatively stable trend from March 2020 to September 2021, with values consistently above 16, indicating that the company was efficiently utilizing its fixed assets to generate sales during this period.
However, a significant drop in fixed asset turnover is noted in June 2021, with a value of 5.98. This sudden decline may suggest a potential inefficiency in the utilization of fixed assets or a decrease in sales relative to the value of fixed assets during that quarter.
Subsequently, ODP Corp shows a noticeable improvement in fixed asset turnover from September 2021 to June 2022, with values increasing steadily from 18.53 to 18.29. This improvement indicates a better utilization of fixed assets to generate sales during this period.
The data for the following quarters shows a further increase in fixed asset turnover, reaching a peak of 24.41 in March 2023. This significant increase suggests that ODP Corp was able to enhance its efficiency in utilizing fixed assets to drive sales during that quarter.
However, there is a sharp decline in fixed asset turnover in June 2023, dropping to 6.69. This sudden decrease might indicate a potential issue with the company's fixed asset management or a drop in sales relative to fixed assets during that period.
The data for the remaining quarters is not available, but based on the trends observed, it is crucial for ODP Corp to maintain or improve its fixed asset turnover to ensure efficient utilization of fixed assets in generating revenue. Monitoring and analyzing this ratio consistently can help the company optimize its asset management and improve operational efficiency over time.
Peer comparison
Dec 31, 2024