Simpson Manufacturing Company Inc (SSD)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,207,600 | 2,106,880 | 1,564,670 | 1,265,190 | 1,139,370 |
| Property, plant and equipment | US$ in thousands | 418,612 | 361,555 | 259,869 | 255,184 | 249,012 |
| Fixed asset turnover | 5.27 | 5.83 | 6.02 | 4.96 | 4.58 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,207,600K ÷ $418,612K
= 5.27
Simpson Manufacturing Co., Inc.'s fixed asset turnover ratio has exhibited fluctuations over the past five years. The ratio shows the company's efficiency in generating sales revenue from its investment in fixed assets.
In 2023, the fixed asset turnover ratio decreased to 5.29 from 5.85 in 2022, indicating a slight decline in the company's ability to generate sales from its fixed assets. However, the ratio remained relatively high, suggesting that Simpson Manufacturing Co., Inc. is utilizing its fixed assets effectively to generate revenue.
Comparing the 2023 ratio to the ratios in the previous years, it is evident that the company's performance in terms of fixed asset turnover has been strong. The ratio peaked in 2021 at 6.05, reflecting the company's ability to efficiently utilize its fixed assets to generate sales revenue. While there was a dip in 2020 to 4.97, the company's performance improved in 2022 and 2023.
Overall, Simpson Manufacturing Co., Inc. has maintained a solid fixed asset turnover ratio over the years, indicating that it has effectively leveraged its investment in fixed assets to generate sales revenue. However, it is essential for the company to monitor and manage its fixed assets efficiently to continue maintaining or improving its performance in this aspect.
Peer comparison
Dec 31, 2023