Terex Corporation (TEX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,151,500 | 4,417,700 | 3,886,800 | 3,076,400 | 4,353,100 |
| Property, plant and equipment | US$ in thousands | 569,800 | 465,600 | 429,600 | 406,600 | 389,400 |
| Fixed asset turnover | 9.04 | 9.49 | 9.05 | 7.57 | 11.18 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,151,500K ÷ $569,800K
= 9.04
Terex Corp. has exhibited fluctuations in its fixed asset turnover ratio over the past five years, ranging from a high of 11.18 in 2019 to a low of 7.57 in 2020. The trend indicates that the company has been able to generate revenue more efficiently from its fixed assets in some years compared to others. While the ratio decreased in 2020, it regained momentum in the subsequent years, with the highest value seen in 2019. The company's fixed asset turnover ratio of 9.04 in 2023 suggests that it generated $9.04 in revenue for every dollar invested in fixed assets during that year. Overall, the varying performance of the fixed asset turnover ratio indicates fluctuations in the company's operational efficiency and utilization of fixed assets over the years.