Travel + Leisure Co (TNL)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,864,000 | 3,750,000 | 3,567,000 | 3,134,000 | 2,160,000 |
| Property, plant and equipment | US$ in thousands | 591,000 | 655,000 | 658,000 | 689,000 | 666,000 |
| Fixed asset turnover | 6.54 | 5.73 | 5.42 | 4.55 | 3.24 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,864,000K ÷ $591,000K
= 6.54
Travel + Leisure Co's fixed asset turnover has demonstrated a consistent upward trend from 3.24 in December 31, 2020, reaching 6.54 by December 31, 2024. This indicates that the company has been effectively utilizing its fixed assets to generate revenue over the years. A higher fixed asset turnover ratio implies that Travel + Leisure Co is generating more revenue per dollar of investment in fixed assets.
The increasing trend suggests that the company has been able to improve its operational efficiency and effectively manage its fixed assets to drive revenue growth. This may be attributed to strategic asset utilization, operational improvements, or effective capital investments. A rising fixed asset turnover ratio can also indicate that the company is implementing cost-efficient practices and maximizing the productivity of its fixed assets.
Overall, the positive trajectory of Travel + Leisure Co's fixed asset turnover ratio signifies strong asset management and efficient utilization of fixed assets to generate revenue, which is a favorable indicator of the company's operational performance and financial health.
Peer comparison
Dec 31, 2024