Terex Corporation (TEX)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,127,000 | 5,152,000 | 4,417,700 | 3,886,800 | 3,076,400 |
| Property, plant and equipment | US$ in thousands | 714,000 | 570,000 | 465,600 | 429,600 | 406,600 |
| Fixed asset turnover | 7.18 | 9.04 | 9.49 | 9.05 | 7.57 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,127,000K ÷ $714,000K
= 7.18
The fixed asset turnover ratio for Terex Corporation has exhibited a generally positive trend over the years, showing improvements from 7.57 in 2020 to 9.49 in 2022. This indicates that the company has been more efficient in generating revenue relative to its investment in fixed assets during this period. However, there was a slight decrease in 2023 to 9.04 before dropping more significantly to 7.18 in 2024. This decrease may suggest a decline in the company's ability to utilize its fixed assets effectively to generate sales. Further investigation into the reasons behind this decline in efficiency may be warranted to identify potential areas for improvement in the company's operations.