Pentair PLC (PNR)
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 | 3,987,100 | 4,062,100 | 4,108,400 | 4,090,100 | 4,061,100 | 4,097,400 | 4,011,500 | 3,888,400 | 3,754,700 | 3,572,200 | 3,401,500 | 3,173,700 | 3,017,800 | 2,977,000 | 2,892,100 | 2,978,300 | 2,957,200 | 2,942,500 | 2,940,300 | 2,921,400 |
| Property, plant and equipment | US$ in thousands | 362,000 | 350,500 | 349,900 | 348,800 | 344,500 | 339,100 | 318,400 | 315,000 | 310,000 | 296,800 | 297,100 | 293,400 | 301,200 | 291,100 | 284,700 | 280,700 | 283,200 | 277,900 | 280,300 | 279,100 |
| Fixed asset turnover | 11.01 | 11.59 | 11.74 | 11.73 | 11.79 | 12.08 | 12.60 | 12.34 | 12.11 | 12.04 | 11.45 | 10.82 | 10.02 | 10.23 | 10.16 | 10.61 | 10.44 | 10.59 | 10.49 | 10.47 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,987,100K ÷ $362,000K
= 11.01
Fixed asset turnover is a financial ratio that measures how effectively a company is generating sales revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more efficiently to generate sales.
Analyzing Pentair plc's fixed asset turnover ratio over the past eight quarters, we observe a consistent trend of above 11, indicating strong efficiency in utilizing its fixed assets. The ratio has been relatively stable, ranging from 11.34 to 12.63, with a slight decline in the most recent quarter to 11.34.
Despite the recent decrease, Pentair plc has maintained a high level of efficiency in generating sales revenue from its fixed assets throughout the periods under review. This suggests effective asset management and operational processes in place to support revenue generation. Further investigation into the reasons behind the fluctuations in the ratio could provide additional insights into the company's operational performance.
Peer comparison
Dec 31, 2023