Stanley Black & Decker Inc (SWK)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,781,100 | 16,947,400 | 15,281,300 | 12,750,000 | 12,912,900 |
| Property, plant and equipment | US$ in thousands | 2,169,900 | 2,353,100 | 2,336,800 | 1,973,100 | 1,959,500 |
| Fixed asset turnover | 7.27 | 7.20 | 6.54 | 6.46 | 6.59 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $15,781,100K ÷ $2,169,900K
= 7.27
The fixed asset turnover ratio for Stanley Black & Decker Inc has fluctuated over the past five years, ranging from 6.46 to 7.27. This ratio indicates the company's efficiency in generating sales from its investment in fixed assets. A higher fixed asset turnover ratio suggests that the company is effectively utilizing its fixed assets to generate revenue.
The consistent high values of the fixed asset turnover ratio over the years indicate that Stanley Black & Decker Inc is efficiently using its fixed assets to generate sales. This efficiency could be attributed to effective asset management, optimal utilization of machinery and equipment, and strategic investment decisions.
Overall, the trend of increasing fixed asset turnover ratio shows that the company has been successful in generating higher revenue from its fixed assets over the years, highlighting its operational efficiency and ability to maximize returns on investment in fixed assets.
Peer comparison
Dec 31, 2023