PPG Industries Inc (PPG)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 15,845,000 | 18,030,000 | 18,099,000 | 18,177,000 | 18,246,000 | 18,081,000 | 17,905,000 | 17,724,000 | 17,652,000 | 17,657,000 | 17,561,000 | 17,229,000 | 16,802,000 | 16,369,000 | 15,682,000 | 14,338,000 | 13,834,000 | 13,749,000 | 13,890,000 | 14,899,000 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 4,231,000 | 3,418,000 | 3,355,000 | 3,328,000 | 3,140,000 | 3,214,000 | 3,322,000 | 3,442,000 | 4,256,000 | 4,358,000 | 3,052,000 | 3,127,000 | 2,897,000 | 2,865,000 | 2,863,000 |
| Fixed asset turnover | — | — | — | — | — | 4.27 | 5.24 | 5.28 | 5.30 | 5.62 | 5.46 | 5.19 | 4.88 | 3.85 | 3.60 | 4.70 | 4.42 | 4.75 | 4.85 | 5.20 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,845,000K ÷ $—K
= —
The fixed asset turnover ratio measures a company's ability to generate sales from its investment in fixed assets. A higher fixed asset turnover ratio generally indicates that a company is using its fixed assets more efficiently to generate revenue.
For PPG Industries Inc, the fixed asset turnover ratio has fluctuated over the years. The ratio was relatively high in the first half of 2020, ranging from 4.75 to 5.20. However, there was a noticeable decline in the ratio in the second half of 2020, dropping to around 4.42 by December 31. This could indicate a decrease in sales generated from fixed assets during that period.
In the following quarters of 2021, the fixed asset turnover ratio remained below the levels seen in early 2020, hovering around 3.60 to 4.88. The ratio showed some improvement in 2022, reaching values between 5.19 to 5.62. This suggests that PPG Industries Inc was utilizing its fixed assets more effectively to generate sales during this period.
By the end of 2023, the fixed asset turnover ratio decreased to 4.27, signaling a potential decrease in sales relative to fixed assets. Notably, no data is provided for the fixed asset turnover ratio beyond December 31, 2023.
Overall, fluctuations in PPG Industries Inc's fixed asset turnover ratio indicate varying levels of efficiency in utilizing fixed assets to generate revenue. Monitoring this ratio can provide insights into the company's operational performance and asset utilization efficiency.
Peer comparison
Dec 31, 2024