Rogers Corporation (ROG)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	902,700	959,464	934,230	796,307	890,491
Property, plant and equipment	US$ in thousands	750,500	738,250	694,428	631,205	595,085
Fixed asset turnover		1.20	1.30	1.35	1.26	1.50

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $902,700K ÷ $750,500K
= 1.20

Fixed asset turnover measures how efficiently a company generates revenue from its investments in fixed assets. A declining trend in fixed asset turnover over the past five years for Rogers Corp. may indicate that the company is becoming less efficient in utilizing its fixed assets to generate sales.

The fixed asset turnover ratio has decreased from 3.45 in 2019 to 2.48 in 2023. This suggests that, over time, Rogers Corp.'s fixed assets are generating less revenue relative to their book value. A lower fixed asset turnover ratio may be a sign of underutilized fixed assets or poor sales performance relative to the level of investments in property, plant, and equipment.

It is important for Rogers Corp. to closely assess the reasons behind the declining fixed asset turnover ratio and implement strategies to improve asset utilization efficiency. This could involve optimizing production processes, increasing sales volume, or disposing of underperforming assets to enhance overall operational efficiency and profitability.