Travel + Leisure Co (TNL)
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 | 3,865,000 | 3,830,000 | 3,823,000 | 3,787,000 | 3,750,000 | 3,713,000 | 3,664,000 | 3,637,000 | 3,567,000 | 3,538,000 | 3,440,000 | 3,315,000 | 3,134,000 | 2,909,000 | 2,684,000 | 2,230,000 | 2,160,000 | 2,688,000 | 3,107,000 | 3,735,000 |
| Property, plant and equipment | US$ in thousands | 591,000 | 594,000 | 596,000 | 614,000 | 655,000 | 655,000 | 665,000 | 670,000 | 658,000 | 736,000 | 730,000 | 743,000 | 689,000 | 678,000 | 645,000 | 658,000 | 666,000 | 679,000 | 670,000 | 682,000 |
| Fixed asset turnover | 6.54 | 6.45 | 6.41 | 6.17 | 5.73 | 5.67 | 5.51 | 5.43 | 5.42 | 4.81 | 4.71 | 4.46 | 4.55 | 4.29 | 4.16 | 3.39 | 3.24 | 3.96 | 4.64 | 5.48 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,865,000K ÷ $591,000K
= 6.54
Fixed asset turnover is a key financial ratio that measures how efficiently a company is generating revenue from its fixed assets. In the case of Travel + Leisure Co, the fixed asset turnover has shown a generally increasing trend from March 31, 2020, to December 31, 2024.
The ratio started at 5.48 on March 31, 2020, indicating that the company generated $5.48 in sales for every $1 of fixed assets. Subsequently, there was a decline in the ratio to 3.24 by December 31, 2020, which could suggest a decrease in revenue relative to fixed assets during this period. However, the ratio began to improve in the following quarters, reaching 6.54 by December 31, 2024, showing that the company was able to generate $6.54 in sales for every $1 of fixed assets.
Overall, the increasing trend in fixed asset turnover indicates that Travel + Leisure Co has been utilizing its fixed assets more efficiently over the years, which could imply better operational performance and potentially higher profitability. However, it is important to consider other financial metrics and factors to gain a comprehensive understanding of the company's financial health and performance.
Peer comparison
Dec 31, 2024