Pilgrims Pride Corp (PPC)
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 | 17,121,930 | 16,725,710 | 16,871,300 | 17,222,890 | 17,295,990 | 17,269,750 | 16,618,380 | 15,613,130 | 14,664,000 | 13,755,120 | 12,996,470 | 12,195,720 | 12,013,720 | 11,959,380 | 11,675,740 | 11,696,170 | 11,323,080 | 10,916,380 | 10,833,440 | 10,859,590 |
| Property, plant and equipment | US$ in thousands | 3,152,850 | 3,103,420 | 3,085,540 | 2,997,300 | 2,940,850 | 2,812,050 | 2,853,890 | 2,890,020 | 2,917,810 | 2,848,470 | 2,677,390 | 2,682,370 | 2,657,490 | 2,585,820 | 2,548,560 | 2,562,790 | 2,592,060 | 2,211,120 | 2,210,210 | 2,195,710 |
| Fixed asset turnover | 5.43 | 5.39 | 5.47 | 5.75 | 5.88 | 6.14 | 5.82 | 5.40 | 5.03 | 4.83 | 4.85 | 4.55 | 4.52 | 4.62 | 4.58 | 4.56 | 4.37 | 4.94 | 4.90 | 4.95 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $17,121,930K ÷ $3,152,850K
= 5.43
Pilgrim's Pride Corp.'s fixed asset turnover ratio has shown some fluctuations over the past eight quarters. The ratio has been consistently above 5, indicating that the company is effectively generating sales revenue relative to its investment in fixed assets.
The highest fixed asset turnover ratio was observed in Q4 2022 at 6.18, suggesting that the company was very efficient in utilizing its fixed assets to generate sales during that quarter. However, the ratio has since shown a downward trend, with Q1 2023 recording the lowest turnover of 5.45.
Overall, Pilgrim's Pride Corp. has maintained a relatively stable fixed asset turnover ratio above 5 over the past two years, indicating efficient utilization of its fixed assets to generate revenue. The slight fluctuations in the ratio could be attributed to changes in sales volume, asset efficiency, or capital expenditure levels. Monitoring this ratio over time can provide insights into the company's operational efficiency and asset management strategies.
Peer comparison
Dec 31, 2023