Sotera Health Co (SHC)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,049,288 | 990,639 | 976,166 | 987,523 | 1,003,687 | 993,346 | 970,806 | 956,084 | 931,478 | |||
| Property, plant and equipment | US$ in thousands | 946,914 | 884,385 | 859,138 | 816,164 | 774,527 | 704,406 | 699,571 | 669,161 | 650,797 | 624,341 | 623,513 | 611,620 |
| Fixed asset turnover | 1.11 | 1.12 | 1.14 | 1.21 | 1.30 | 1.41 | 1.39 | 1.43 | 1.43 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,049,288K ÷ $946,914K
= 1.11
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of investment in fixed assets.
Based on the data provided, Sotera Health Co's fixed asset turnover has been gradually decreasing from 1.43 in Q1 2022 to 1.11 in Q4 2023. This downward trend suggests that the company's utilization of its fixed assets to generate sales has declined over the periods analyzed.
A fixed asset turnover ratio of 1.11 in Q4 2023 implies that for every $1 invested in fixed assets, the company is generating $1.11 in revenue. This can indicate a decrease in operational efficiency or a need for further analysis of the company's fixed asset management.
It is important for stakeholders to closely monitor the trend in fixed asset turnover over time and compare it with industry benchmarks to assess the company's operational efficiency and asset utilization. Further analysis of the factors contributing to the change in the fixed asset turnover ratio would provide valuable insights into Sotera Health Co's financial performance and strategic decisions.
Peer comparison
Dec 31, 2023