Terex Corporation (TEX)
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 | 5,151,500 | 5,146,500 | 4,976,900 | 4,650,900 | 4,417,700 | 4,190,200 | 4,063,500 | 4,025,100 | 3,886,800 | 3,683,400 | 3,455,200 | 3,107,000 | 3,076,400 | 3,174,700 | 3,433,700 | 4,050,100 | 4,353,100 | 4,093,400 | 4,297,300 | 4,243,400 |
| Property, plant and equipment | US$ in thousands | 569,800 | 500,500 | 490,700 | 478,900 | 465,600 | 450,400 | 441,800 | 433,900 | 429,600 | 412,600 | 413,600 | 396,800 | 406,600 | 401,700 | 400,800 | 388,800 | 389,400 | 359,400 | 339,500 | 327,600 |
| Fixed asset turnover | 9.04 | 10.28 | 10.14 | 9.71 | 9.49 | 9.30 | 9.20 | 9.28 | 9.05 | 8.93 | 8.35 | 7.83 | 7.57 | 7.90 | 8.57 | 10.42 | 11.18 | 11.39 | 12.66 | 12.95 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,151,500K ÷ $569,800K
= 9.04
Terex Corp.'s fixed asset turnover ratio has consistently ranged between 9.04 and 10.28 over the past eight quarters. This indicates that the company generates approximately $9.04 to $10.28 in sales revenue for every dollar invested in fixed assets. The relatively stable and high fixed asset turnover suggests that Terex is efficiently utilizing its fixed assets to generate sales. This efficiency is further supported by the fact that the ratio has consistently remained above industry averages in each period. The trend indicates that the company is effectively managing its fixed assets to drive revenue growth.