SPX Corp (SPXC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,713,100 | 1,450,500 | 1,205,300 | 1,542,400 | 1,502,300 |
| Property, plant and equipment | US$ in thousands | 140,000 | 109,200 | 112,300 | 104,300 | 179,100 |
| Fixed asset turnover | 12.24 | 13.28 | 10.73 | 14.79 | 8.39 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,713,100K ÷ $140,000K
= 12.24
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its investment in fixed assets. Higher fixed asset turnover ratios indicate that a company is utilizing its fixed assets more efficiently to generate sales.
Over the past five years, SPX Corp's fixed asset turnover has varied, with values ranging from 8.39 to 14.79. The company's fixed asset turnover was highest in 2020 at 14.79, suggesting that SPX Corp generated $14.79 in sales for every dollar invested in fixed assets during that year. This high ratio indicates efficient utilization of fixed assets to generate revenue.
In 2021, the fixed asset turnover decreased to 10.73, indicating a slight decrease in efficiency in utilizing fixed assets to generate sales revenue. However, the ratio improved in 2022 to 13.28, indicating the company's ability to generate more sales from its investment in fixed assets.
In the most recent period of 2023, SPX Corp's fixed asset turnover further decreased to 12.24, signaling a slight decline in efficiency compared to the previous year. Overall, the fluctuations in the fixed asset turnover ratio over the past five years suggest varying levels of efficiency in utilizing fixed assets to generate sales revenue for SPX Corp.
Peer comparison
Dec 31, 2023