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