Pilgrims Pride Corp (PPC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,112,600 | 17,295,900 | 14,639,400 | 11,996,600 | 11,295,500 |
| Property, plant and equipment | US$ in thousands | 3,152,850 | 2,940,850 | 2,917,810 | 2,657,490 | 2,592,060 |
| Fixed asset turnover | 5.43 | 5.88 | 5.02 | 4.51 | 4.36 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $17,112,600K ÷ $3,152,850K
= 5.43
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover indicates that the company is generating more revenue per dollar of investment in fixed assets.
Analyzing the data provided for Pilgrim's Pride Corp., we can see a fluctuating trend in the fixed asset turnover ratio over the past five years. The ratio was 5.50 in 2023, which decreased from 5.94 in 2022 but was higher compared to the previous years. This suggests that the company generated $5.50 in revenue for every dollar invested in fixed assets in 2023.
The increasing trend from 2019 to 2022 indicates an improvement in the efficiency of utilizing fixed assets to generate revenue. However, the decrease in 2023 may be a cause for further investigation to understand the potential reasons for the decline.
Overall, Pilgrim's Pride Corp. has shown a strong performance in utilizing its fixed assets efficiently to generate revenue, as indicated by the generally high fixed asset turnover ratios over the past five years. Further analysis and comparison with industry standards would provide more insights into the company's operational efficiency and investment in fixed assets.
Peer comparison
Dec 31, 2023