Simpson Manufacturing Company Inc (SSD)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,207,715 | 2,177,144 | 2,150,806 | 2,146,344 | 2,106,837 | 2,054,135 | 1,897,115 | 1,714,148 | 1,566,618 | 1,445,325 | 1,412,952 | 1,328,784 | 1,265,192 | 1,242,584 | 1,188,145 | 1,167,566 | 1,142,046 | 1,123,770 | 1,098,420 | 1,100,807 |
| Property, plant and equipment | US$ in thousands | 418,612 | 382,508 | 375,240 | 369,089 | 361,555 | 341,233 | 346,184 | 265,675 | 259,869 | 255,547 | 255,353 | 255,684 | 255,184 | 246,472 | 247,119 | 246,941 | 249,012 | 250,950 | 252,710 | 251,398 |
| Fixed asset turnover | 5.27 | 5.69 | 5.73 | 5.82 | 5.83 | 6.02 | 5.48 | 6.45 | 6.03 | 5.66 | 5.53 | 5.20 | 4.96 | 5.04 | 4.81 | 4.73 | 4.59 | 4.48 | 4.35 | 4.38 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,207,715K ÷ $418,612K
= 5.27
Simpson Manufacturing Co., Inc. has shown relatively stable fixed asset turnover ratios over the past eight quarters. The fixed asset turnover ratio measures how effectively the company is utilizing its fixed assets to generate sales revenue.
The company's fixed asset turnover has ranged from 5.29 to 6.47 during the specified period. A higher fixed asset turnover indicates that the company is generating more revenue per dollar invested in fixed assets, which is generally seen as a positive indicator of operational efficiency.
The trend in Simpson Manufacturing Co., Inc.'s fixed asset turnover ratios shows a slight decrease in the most recent quarters, indicating a potential decline in efficiency of utilizing fixed assets to generate sales. However, overall, the company has maintained a relatively high level of fixed asset turnover, suggesting effective management of its fixed assets.
It would be beneficial for the company to further analyze the reasons behind the downward trend in fixed asset turnover to identify potential areas for improvement in asset utilization efficiency.
Peer comparison
Dec 31, 2023