SpartanNash Co (SPTN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,729,220 | 9,643,100 | 8,931,040 | 9,348,480 | 8,536,060 |
| Property, plant and equipment | US$ in thousands | 649,071 | 610,220 | 577,359 | 577,059 | 615,816 |
| Fixed asset turnover | 14.99 | 15.80 | 15.47 | 16.20 | 13.86 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,729,220K ÷ $649,071K
= 14.99
Fixed asset turnover measures how efficiently a company generates sales revenue from its investment in fixed assets. SpartanNash Co has exhibited a declining trend in fixed asset turnover over the past five years, reaching 14.99 in 2023 from a high of 16.20 in 2020. This indicates that the company is generating $14.99 in sales for every dollar invested in fixed assets in 2023.
A decreasing fixed asset turnover could suggest inefficiencies in asset utilization or a slowdown in sales growth relative to the investment in fixed assets. While the company's fixed asset turnover remains relatively high, the downward trend over the years may warrant further investigation into the company's asset management strategies. It is essential for SpartanNash Co to closely monitor and optimize its asset utilization to improve operational efficiency and maximize returns on its investment in fixed assets.
Peer comparison
Dec 31, 2023