PPG Industries Inc (PPG)

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 18,119,000 17,888,000 17,733,000 17,607,000 17,552,000 17,655,000 17,643,000 17,356,000 16,913,000 16,477,000 15,717,000 14,289,000 13,791,000 13,706,000 13,844,000 14,888,000 15,131,000 15,104,000 15,103,000 15,207,000
Property, plant and equipment US$ in thousands 3,644,000 3,406,000 3,418,000 3,355,000 3,328,000 3,140,000 3,214,000 3,322,000 3,442,000 3,350,000 3,424,000 3,052,000 3,127,000 2,897,000 2,865,000 2,863,000 2,983,000 2,862,000 2,929,000 2,866,000
Fixed asset turnover 4.97 5.25 5.19 5.25 5.27 5.62 5.49 5.22 4.91 4.92 4.59 4.68 4.41 4.73 4.83 5.20 5.07 5.28 5.16 5.31

December 31, 2023 calculation

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

PPG Industries, Inc.'s fixed asset turnover ratio has exhibited relative stability over the past eight quarters, ranging from a low of 5.01 in Q4 2023 to a high of 5.62 in Q3 2022. This ratio indicates the company's ability to generate revenue from its investment in fixed assets, with a higher ratio generally being favorable as it suggests efficient utilization of fixed assets.

The decreasing trend seen in the most recent quarters from Q3 2022 to Q4 2023 may raise concerns about the company's operational efficiency in generating sales from its fixed assets. However, the overall range of values between 5.01 and 5.62 suggests that PPG Industries has been consistently effective in generating revenue relative to its investment in fixed assets.

Investors and stakeholders should continue to monitor this ratio in future quarters to assess whether the recent decline is a temporary fluctuation or a sustained trend that may warrant further investigation into the company's asset management and operational efficiency.


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