Stepan Company (SCL)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,180,270 | 2,325,770 | 2,773,270 | 2,345,970 | 1,869,750 |
| Property, plant and equipment | US$ in thousands | — | — | 1,073,300 | 850,604 | 682,667 |
| Fixed asset turnover | — | — | 2.58 | 2.76 | 2.74 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,180,270K ÷ $—K
= —
Fixed asset turnover is a key financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. Stepan Company's fixed asset turnover has shown a relatively stable trend over the past few years.
In 2020, the fixed asset turnover was 2.74, indicating that Stepan Company generated $2.74 in sales for every dollar invested in fixed assets. This ratio increased slightly to 2.76 in 2021, suggesting a marginal improvement in efficiency in utilizing fixed assets to generate revenue.
However, there was a slight dip in fixed asset turnover to 2.58 in 2022, which might raise concerns about the company's ability to efficiently utilize its fixed assets to generate revenue. Unfortunately, there is no data available for 2023 and 2024 to provide a complete trend analysis for those years.
Overall, Stepan Company's fixed asset turnover indicates a moderate level of efficiency in generating sales from its investment in fixed assets. It would be important for the company to monitor this ratio consistently and take measures to improve efficiency if necessary.
Peer comparison
Dec 31, 2024