Sealed Air Corporation (SEE)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,488,900 | 5,641,900 | 5,533,800 | 4,903,200 | 4,791,100 |
| Property, plant and equipment | US$ in thousands | 1,416,400 | 1,275,900 | 1,232,000 | 1,189,700 | 1,141,900 |
| Fixed asset turnover | 3.88 | 4.42 | 4.49 | 4.12 | 4.20 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,488,900K ÷ $1,416,400K
= 3.88
Fixed asset turnover measures the efficiency of Sealed Air Corp. in generating revenue from its fixed assets. A declining trend in fixed asset turnover from 4.20 in 2019 to 3.88 in 2023 indicates a decreasing efficiency in utilizing fixed assets to generate revenue over the years. This could potentially point towards underutilization of fixed assets or a decline in sales generated per dollar invested in fixed assets.
Although there was a slight increase from 2022 to 2023, the overall trend suggests that Sealed Air Corp. may need to review its fixed asset management strategies to improve efficiency and maximize the returns on its fixed asset investments. A fixed asset turnover ratio below industry averages may indicate that the company could benefit from optimizing its asset utilization and operational processes to enhance overall performance.
Peer comparison
Dec 31, 2023