Packaging Corp of America (PKG)
Fixed asset turnover
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,717,200 | 7,752,600 | 7,939,800 | 8,213,600 | 8,363,200 | 8,305,800 | 8,173,700 | 7,815,000 | 7,480,100 | 7,299,000 | 6,993,000 | 6,658,500 | 6,572,600 | 6,578,400 | 6,634,200 | 6,855,700 | 6,877,900 | 6,904,500 | 6,989,000 | 8,786,200 |
| Property, plant and equipment | US$ in thousands | 3,863,800 | 3,863,400 | 3,886,700 | 3,896,600 | 3,900,000 | 3,813,200 | 3,762,900 | 3,670,700 | 3,529,000 | 3,360,800 | 3,240,500 | 3,212,500 | 3,193,400 | 3,130,900 | 3,114,700 | 3,138,600 | 3,151,700 | 3,110,400 | 3,107,200 | 3,109,800 |
| Fixed asset turnover | 2.00 | 2.01 | 2.04 | 2.11 | 2.14 | 2.18 | 2.17 | 2.13 | 2.12 | 2.17 | 2.16 | 2.07 | 2.06 | 2.10 | 2.13 | 2.18 | 2.18 | 2.22 | 2.25 | 2.83 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,717,200K ÷ $3,863,800K
= 2.00
Packaging Corp Of America's fixed asset turnover ratio has shown a declining trend over the fiscal year 2023. The ratio decreased from 2.17 in Q4 2022 to 2.02 in Q4 2023, indicating that the company generated $2.02 in sales for every dollar invested in fixed assets at the end of Q4 2023. This decline could suggest that the efficiency of utilizing fixed assets to generate revenue has slightly weakened.
However, it is important to note that despite the decline, the ratio has remained relatively stable above 2 throughout the year, indicating that the company is effectively leveraging its fixed assets to generate sales. The ratio peaked at 2.24 in Q3 2022 and Q2 2022, indicating a higher level of efficiency during these quarters.
Overall, Packaging Corp Of America has maintained a healthy level of fixed asset turnover, although there has been a slight decline in efficiency over the fiscal year 2023. Further analysis and comparison with industry benchmarks may provide more insights into the company's performance in utilizing its fixed assets effectively.
Peer comparison
Dec 31, 2023