REX American Resources Corporation (REX)

Fixed asset turnover

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Revenue (ttm)	US$ in thousands	833,384	845,937	845,135	873,486	855,000	866,849	849,638	804,988	774,802	688,804	609,955	453,604	372,812	367,714	330,168	396,709	418,034	410,458	447,537	470,426
Property, plant and equipment	US$ in thousands	155,587	144,567	135,144	135,125	135,497	131,235	131,580	134,575	137,554	141,205	145,078	149,067	150,861	154,401	158,513	163,132	163,327	167,754	171,550	177,008
Fixed asset turnover		5.36	5.85	6.25	6.46	6.31	6.61	6.46	5.98	5.63	4.88	4.20	3.04	2.47	2.38	2.08	2.43	2.56	2.45	2.61	2.66

January 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $833,384K ÷ $155,587K
= 5.36

The fixed asset turnover ratio for REX American Resources Corporation has shown fluctuations over the past few quarters. The ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio generally implies better efficiency in asset utilization.

From the data provided, we observe that the fixed asset turnover ratio has varied between 2.08 to 6.61 over the past several quarters. The trend shows that there has been an overall upward trajectory in the ratio until reaching a peak around mid-2022, followed by a slight decline.

The company experienced a significant improvement in asset turnover from early 2020 to mid-2022, indicating improved efficiency in generating revenue from its fixed assets during that period. However, there has been a slight decline in the ratio in more recent quarters, potentially indicating a slowdown in the utilization of fixed assets to generate revenue.

It is important for the company to closely monitor and potentially improve its asset turnover ratio to ensure optimal utilization of fixed assets and maximize revenue generation. Analyzing the underlying reasons for the fluctuations in this ratio can provide insights into operational efficiency and future revenue potential.