PPG Industries Inc (PPG)

Fixed asset turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 18,119,000 17,539,000 16,913,000 13,780,000 15,135,000
Property, plant and equipment US$ in thousands 3,644,000 3,328,000 3,442,000 3,127,000 2,983,000
Fixed asset turnover 4.97 5.27 4.91 4.41 5.07

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $18,119,000K ÷ $3,644,000K
= 4.97

The fixed asset turnover of PPG Industries, Inc. has shown a fluctuating trend over the past five years. The ratio indicates the company's ability to generate sales from its investment in fixed assets.

The fixed asset turnover ratio decreased from 5.08 in 2019 to 4.42 in 2020, suggesting a decline in efficiency in utilizing its fixed assets to generate sales during that period. However, there was a significant improvement in 2022 when the ratio increased to 5.30, indicating the company was able to generate more sales relative to its fixed assets investment.

In 2023, the fixed asset turnover ratio slightly decreased to 5.01. While it is lower compared to the previous year, the company is still efficient in utilizing its fixed assets to generate revenue. Overall, the company has been able to maintain a relatively high fixed asset turnover ratio over the five-year period, showcasing strong efficiency in utilizing its fixed assets.


Peer comparison

Dec 31, 2023

Company name
Symbol
Fixed asset turnover
PPG Industries Inc
PPG
4.97
Axalta Coating Systems Ltd
AXTA
4.30
RPM International Inc
RPM
5.42