RPM International Inc (RPM)
Fixed asset turnover
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,372,650 | 7,298,830 | 7,345,250 | 7,292,210 | 7,335,280 | 7,343,330 | 7,336,530 | 7,335,960 | 7,256,420 | 7,224,100 | 7,141,800 | 6,989,630 | 6,707,730 | 6,468,150 | 6,303,670 | 6,150,050 | 6,106,300 | 5,820,950 | 5,725,530 | 5,640,900 |
| Property, plant and equipment | US$ in thousands | 1,843,800 | 1,739,280 | 1,730,770 | 1,715,680 | — | — | 1,577,380 | 1,569,980 | 1,239,480 | 1,166,020 | 1,125,870 | 1,099,370 | 1,103,980 | 1,049,020 | 1,023,080 | 1,249,700 | 1,266,010 | 902,631 | 889,399 | 860,975 |
| Fixed asset turnover | 4.00 | 4.20 | 4.24 | 4.25 | — | — | 4.65 | 4.67 | 5.85 | 6.20 | 6.34 | 6.36 | 6.08 | 6.17 | 6.16 | 4.92 | 4.82 | 6.45 | 6.44 | 6.55 |
May 31, 2025 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,372,650K ÷ $1,843,800K
= 4.00
The fixed asset turnover ratio for RPM International Inc. demonstrates notable fluctuations over the analyzed period from August 2020 through May 2025. The ratio commenced at 6.55 in August 2020 and experienced a slight decline to 6.44 by November 2020, with a marginal increase to 6.45 in February 2021. This initial period reflects relatively stable efficiency in utilizing fixed assets to generate sales.
A significant decrease occurs by May 2021, where the ratio drops sharply to 4.82, indicating a reduction in sales generated per dollar invested in fixed assets. This downward trend continues into August 2021, with a modest recovery to 4.92, before returning to a higher level of 6.16 in November 2021 and remaining relatively stable through February 2022 (6.17) and May 2022 (6.08). During this interval, the company maintained a consistent level of fixed asset efficiency.
Starting from August 2022, the ratio again exceeds 6, peaking at 6.36 in August 2022 and remaining close at 6.34 in November 2022 and 6.20 in February 2023. However, a decline resumes afterward, with the ratio decreasing to 5.85 in May 2023 and further down to 4.67 in August 2023. The subsequent data for November 2023 shows a slight stabilization at 4.65, with estimations for early 2024 suggesting a continued decrease to approximately 4.24 to 4.00 by May 2025.
Overall, the trend indicates periods of high asset efficiency interspersed with notable declines, particularly from mid-2021 onward. The recent downward movement suggests that RPM International Inc. has been experiencing reduced sales generation relative to its fixed asset base in the latest periods. This pattern could imply factors such as increased investments in fixed assets without a commensurate increase in sales, evolving operational efficiencies, or market/industry dynamics impacting asset utilization.
Peer comparison
May 31, 2025