Stericycle Inc (SRCL)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,591,300 | 2,718,000 | 2,646,700 | 2,548,200 | 3,176,400 |
| Property, plant and equipment | US$ in thousands | 695,500 | 715,700 | 711,000 | 701,300 | 798,500 |
| Fixed asset turnover | 3.73 | 3.80 | 3.72 | 3.63 | 3.98 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,591,300K ÷ $695,500K
= 3.73
Fixed asset turnover measures the efficiency of Stericycle Inc. in generating revenue from its investment in fixed assets. The trend analysis of fixed asset turnover over the past five years shows a relatively consistent performance. The ratio ranged between 3.72 and 4.14, with the latest value for December 31, 2023, standing at 3.75.
The slight decrease in fixed asset turnover from 3.82 in 2020 to 3.75 in 2023 may indicate a slightly lower efficiency in utilizing fixed assets to generate sales. However, the ratio remains above 3.0 in all years, indicating that Stericycle has been able to generate $3.75 of sales for every $1 invested in fixed assets in 2023.
While the trend analysis does show some fluctuations, the overall stability of the fixed asset turnover ratio suggests that Stericycle Inc. has been able to effectively utilize its fixed assets to drive revenue generation consistently over the past five years. It is essential for the company to continue monitoring this ratio to ensure optimal asset utilization and sustainable operational efficiency.
Peer comparison
Dec 31, 2023