Procter & Gamble Company (PG)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019
Revenue (ttm)	US$ in thousands	84,039,000	84,060,000	83,933,000	83,265,000	82,006,000	80,968,000	80,281,000	80,461,000	80,187,000	79,618,000	78,346,000	77,138,000	76,118,000	74,870,000	73,975,000	72,470,000	70,950,000	70,346,000	69,594,000	68,792,000
Property, plant and equipment	US$ in thousands	22,152,000	22,027,000	22,132,000	21,636,000	21,909,000	21,564,000	21,167,000	20,593,000	21,195,000	21,323,000	21,357,000	21,392,000	21,686,000	21,103,000	21,416,000	20,876,000	20,692,000	20,459,000	21,250,000	20,901,000
Fixed asset turnover		3.79	3.82	3.79	3.85	3.74	3.75	3.79	3.91	3.78	3.73	3.67	3.61	3.51	3.55	3.45	3.47	3.43	3.44	3.28	3.29

June 30, 2024 calculation

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

The fixed asset turnover ratio for Procter & Gamble Company has fluctuated over the past few quarters, ranging from 3.28 to 3.91. The ratio measures how efficiently the company is generating sales from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate revenue.

The trend in Procter & Gamble's fixed asset turnover ratio appears to have peaked in the most recent quarter at 3.91, which may suggest improved efficiency in utilizing its fixed assets to generate sales. However, it is essential to note that the ratio has shown some variability over the quarters, indicating potential fluctuations in the company's operational performance or capital expenditure decisions.

Analyzing the fixed asset turnover ratio in conjunction with other financial metrics and industry benchmarks can provide a more holistic assessment of Procter & Gamble's operational efficiency and asset utilization. Additionally, comparing the company's ratio to its historical performance and that of its competitors can offer valuable insights into its long-term sustainability and competitiveness in the market.