RPM International Inc (RPM)
Fixed asset turnover
| 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 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,210,630 | 7,210,030 | 7,225,690 | 7,227,590 | 7,153,220 | 7,135,330 | 7,037,070 | 6,891,810 | 6,615,470 | 6,379,750 | 6,216,330 | 6,062,430 | 6,018,050 | 5,756,940 | 5,658,510 | 5,568,830 | 5,428,360 | 5,570,800 | 5,534,900 | 5,496,300 |
| Property, plant and equipment | US$ in thousands | 1,331,060 | 1,286,880 | 1,253,110 | 1,245,320 | 1,239,480 | 1,166,020 | 1,125,870 | 1,099,370 | 1,103,980 | 1,049,020 | 1,023,080 | 950,824 | 965,182 | 902,631 | 889,399 | 860,975 | 849,686 | 830,733 | 821,775 | 813,016 |
| Fixed asset turnover | 5.42 | 5.60 | 5.77 | 5.80 | 5.77 | 6.12 | 6.25 | 6.27 | 5.99 | 6.08 | 6.08 | 6.38 | 6.24 | 6.38 | 6.36 | 6.47 | 6.39 | 6.71 | 6.74 | 6.76 |
May 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,210,630K ÷ $1,331,060K
= 5.42
The fixed asset turnover ratio for RPM International Inc has shown a relatively stable performance over the past few years, ranging between 5.42 and 6.76. This ratio measures the efficiency with which the company generates sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
The trend observed in RPM International Inc's fixed asset turnover ratio suggests that the company has been consistently efficient in managing its fixed assets to generate revenue. The ratios have generally been above 5.00, indicating that the company is able to generate more sales relative to its investment in fixed assets.
Overall, the consistent and relatively high fixed asset turnover ratios for RPM International Inc reflect positively on the company's operational efficiency and capital allocation strategies. It indicates that the company is effectively using its fixed assets to drive sales growth and maximize profitability.
Peer comparison
May 31, 2024