Procter & Gamble Company (PG)

Fixed asset turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	84,039,000	82,006,000	80,187,000	76,118,000	70,950,000
Property, plant and equipment	US$ in thousands	22,152,000	21,909,000	21,195,000	21,686,000	20,692,000
Fixed asset turnover		3.79	3.74	3.78	3.51	3.43

June 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $84,039,000K ÷ $22,152,000K
= 3.79

Procter & Gamble Company's fixed asset turnover has shown a consistent upward trend over the past five years, with the ratio increasing from 3.43 in June 2020 to 3.79 in June 2024. This indicates that the company is generating more revenue from its fixed assets each year, which is a positive sign of operational efficiency.

The increasing trend in fixed asset turnover suggests that Procter & Gamble is effectively utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio typically indicates that the company is efficient in managing and deploying its fixed assets to generate revenue.

It is important to note that a high fixed asset turnover ratio can also signify aggressive capacity utilization, which may have implications for long-term sustainability and asset maintenance.

Overall, the improving trend in Procter & Gamble Company's fixed asset turnover reflects positively on its operational efficiency and ability to generate revenue from its fixed assets.