Republic Services Inc (RSG)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,278,700 | 15,645,200 | 13,321,800 | 12,031,700 | 12,193,000 |
| Property, plant and equipment | US$ in thousands | 11,064,200 | 10,455,700 | 8,940,400 | 8,498,500 | 8,383,500 |
| Fixed asset turnover | 1.56 | 1.50 | 1.49 | 1.42 | 1.45 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $17,278,700K ÷ $11,064,200K
= 1.56
The fixed asset turnover ratio of Republic Services, Inc. has shown a generally increasing trend over the past five years. This ratio indicates how efficiently the company generates revenue from its investment in fixed assets.
In 2023, the fixed asset turnover ratio reached 1.32, which was an improvement compared to the previous year's ratio of 1.26. This indicates that Republic Services, Inc. generated $1.32 in revenue for every dollar invested in fixed assets in 2023, up from $1.26 in 2022.
Compared to 2020 and 2021, where the ratios were 1.16 and 1.22, respectively, the company has shown continuous improvement in utilizing its fixed assets more efficiently to generate revenue. The slight decline in the ratio in 2019 to 1.23 seems to have been overcome by subsequent years' improvements.
Overall, the increasing trend in the fixed asset turnover ratio reflects positively on Republic Services, Inc.'s ability to manage and utilize its fixed assets effectively to drive revenue generation.
Peer comparison
Dec 31, 2023