Sun Country Airlines Holdings Inc (SNCY)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 1,007,750 | 861,869 | 596,689 |
| Property, plant and equipment | US$ in thousands | 725,921 | 523,676 | 514,490 |
| Fixed asset turnover | 1.39 | 1.65 | 1.16 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,007,750K ÷ $725,921K
= 1.39
Fixed asset turnover is a crucial financial ratio that measures a company's efficiency in generating revenue from its investment in fixed assets. Sun Country Airlines Holdings Inc's fixed asset turnover has shown a positive trend over the past three years, increasing from 1.09 in 2021 to 1.14 in 2022, and further to 1.29 in 2023.
This improvement indicates that the company is becoming more efficient in utilizing its fixed assets to generate sales. A higher ratio suggests that Sun Country Airlines Holdings Inc is effectively managing and maximizing the productivity of its investments in property, plant, and equipment.
The trend in fixed asset turnover implies that the company is making better use of its fixed assets, potentially through increased capacity utilization, operational efficiency, or better asset management strategies. It indicates that Sun Country Airlines Holdings Inc is able to generate more revenue for each dollar invested in fixed assets, which is a positive signal for investors and reflects the company's improving operational performance.
Peer comparison
Dec 31, 2023