Packaging Corp of America (PKG)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,717,400 | 8,363,100 | 7,482,900 | 6,538,200 | 6,788,300 |
| Property, plant and equipment | US$ in thousands | 3,863,800 | 3,900,000 | 3,529,000 | 3,193,400 | 3,151,700 |
| Fixed asset turnover | 2.00 | 2.14 | 2.12 | 2.05 | 2.15 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,717,400K ÷ $3,863,800K
= 2.00
Packaging Corp Of America's fixed asset turnover has exhibited some fluctuation over the past five years. The ratio was at its highest in 2021 at 2.19, indicating that the company generated $2.19 in sales for every dollar invested in fixed assets during that year. Subsequently, the ratio decreased to 2.08 in 2020 before bouncing back to 2.17 in 2022. However, in the latest period of 2023, the fixed asset turnover decreased further to 2.02.
Overall, the trend in fixed asset turnover suggests that the company's efficiency in utilizing its fixed assets to generate sales has slightly decreased in recent years. It is important for Packaging Corp Of America to closely monitor this ratio and assess the reasons behind the fluctuations to ensure optimal utilization of its fixed assets in driving revenue growth.
Peer comparison
Dec 31, 2023