Taylor Morn Home (TMHC)

Fixed asset turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Revenue (ttm) US$ in thousands 8,168,130 7,831,500 7,386,200 7,455,710 7,417,820 7,890,090 8,249,190 8,183,650 8,224,910 8,238,200 8,062,310 7,786,570 7,501,260 6,553,340 6,394,020 6,201,420 6,129,310 6,038,250 5,443,920 5,182,670
Property, plant and equipment US$ in thousands 232,709 322,483 316,706 300,740 295,121 262,671 223,847 213,374 202,398 223,594 220,230 207,918 155,181 146,463 127,869 125,118 97,927 95,546 96,504 98,798
Fixed asset turnover 35.10 24.29 23.32 24.79 25.13 30.04 36.85 38.35 40.64 36.84 36.61 37.45 48.34 44.74 50.00 49.56 62.59 63.20 56.41 52.46

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $8,168,130K ÷ $232,709K
= 35.10

The fixed asset turnover ratio for Taylor Morn Home has shown a declining trend over the past few years, starting at a high of 52.46 in March 2020 and decreasing to 35.10 by December 2024. This indicates that the company is generating decreased revenue relative to its investment in fixed assets, which may suggest inefficiencies in asset utilization or a decline in operational performance.

The substantial drop in the fixed asset turnover from 2020 to 2024 could be a signal that Taylor Morn Home is not effectively leveraging its fixed assets to generate revenue. This trend could be concerning as it may point to potentially underutilized assets, poor asset management, or a decline in the company's overall operational efficiency.

A low fixed asset turnover ratio may also imply that the company is facing challenges in selling its products or services or that its production capacity is not being fully utilized. Management should investigate the reasons behind this declining trend and consider implementing strategies to improve asset turnover to enhance profitability and operational performance.