Sotera Health Co (SHC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 1,049,290 | 1,003,690 | 931,478 |
| Property, plant and equipment | US$ in thousands | 946,914 | 774,527 | 650,797 |
| Fixed asset turnover | 1.11 | 1.30 | 1.43 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,049,290K ÷ $946,914K
= 1.11
The fixed asset turnover ratio measures the efficiency of Sotera Health Co in generating revenues from its fixed assets. A higher ratio indicates that the company is generating more revenue per dollar of investment in fixed assets.
From the data provided, we observe that Sotera Health Co's fixed asset turnover has been fluctuating over the past five years. The ratio decreased from 1.34 in 2019 to 1.30 in 2022, and further decreased to 1.11 in 2023. This indicates that the company may be less efficient in generating revenue from its fixed assets in recent years.
Although the ratio has shown some variability, it is important to compare Sotera Health Co's fixed asset turnover to industry benchmarks or competitors to get a better understanding of its performance. Additionally, analyzing the trend of the ratio over several years can provide insights into the company's operational efficiency and asset utilization strategies. Further analysis of the company's financial statements and industry context would be beneficial in interpreting the implications of the fixed asset turnover ratio fluctuations.
Peer comparison
Dec 31, 2023