Stanley Black & Decker Inc (SWK)
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 | 15,781,100 | 16,031,400 | 16,197,100 | 16,431,200 | 16,947,400 | 16,942,500 | 16,602,600 | 16,008,500 | 15,281,300 | 15,302,100 | 15,010,500 | 14,017,900 | 13,057,700 | 12,769,200 | 12,914,200 | 13,869,200 | 14,442,200 | 14,362,700 | 14,362,700 | 14,362,700 |
| Property, plant and equipment | US$ in thousands | 2,169,900 | 2,200,700 | 2,245,700 | 2,307,100 | 2,353,100 | 2,305,600 | 2,310,600 | 2,365,600 | 2,336,800 | 2,051,300 | 2,038,400 | 2,016,500 | 1,973,100 | 2,005,900 | 2,024,400 | 2,036,700 | 1,959,500 | 1,911,900 | 1,933,300 | 1,927,400 |
| Fixed asset turnover | 7.27 | 7.28 | 7.21 | 7.12 | 7.20 | 7.35 | 7.19 | 6.77 | 6.54 | 7.46 | 7.36 | 6.95 | 6.62 | 6.37 | 6.38 | 6.81 | 7.37 | 7.51 | 7.43 | 7.45 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,781,100K ÷ $2,169,900K
= 7.27
The fixed asset turnover ratio measures how effectively a company is generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets efficiently to generate sales.
In the case of Stanley Black & Decker Inc, the fixed asset turnover ratio has fluctuated over the past few quarters. The ratio ranged from a low of 6.37 in June 2020 to a high of 7.46 in June 2021. Generally, the company has maintained a relatively high fixed asset turnover ratio, indicating efficient utilization of its fixed assets to generate sales revenue.
It is worth noting that the fluctuations in the ratio may be attributed to various factors such as changes in sales volume, asset base, or operational efficiency. Investors and stakeholders should consider analyzing the underlying reasons for these fluctuations to gain a better understanding of the company's operational performance and efficiency in managing its fixed assets. Overall, a high and stable fixed asset turnover ratio is a positive indicator of operational efficiency and effective asset management for Stanley Black & Decker Inc.
Peer comparison
Dec 31, 2023