Gibraltar Industries Inc (ROCK)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,377,740 | 1,389,970 | 1,339,780 | 1,032,580 | 898,233 |
| Property, plant and equipment | US$ in thousands | 107,603 | 109,584 | 96,885 | 89,562 | 78,152 |
| Fixed asset turnover | 12.80 | 12.68 | 13.83 | 11.53 | 11.49 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,377,740K ÷ $107,603K
= 12.80
The fixed asset turnover ratio measures how effectively the company generates sales from its investment in fixed assets. A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate revenue.
Analyzing the fixed asset turnover ratio of Gibraltar Industries Inc. over the past five years, we observe a generally increasing trend from 10.98 in 2019 to 12.80 in 2023. This indicates that the company has been able to enhance its efficiency in utilizing its fixed assets to generate sales over time.
The highest fixed asset turnover ratio was recorded in 2021 at 13.83, suggesting that Gibraltar Industries was exceptionally effective in generating revenue from its fixed asset base that year. Although there was a slight decrease in 2022 to 12.68, the ratio rebounded in 2023 to 12.80, signaling continued efficiency in asset utilization.
Overall, the trend in Gibraltar Industries' fixed asset turnover ratio demonstrates a positive performance in effectively leveraging its fixed assets to drive sales growth and productivity.
Peer comparison
Dec 31, 2023