TRI Pointe Homes Inc (TPH)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,715,200 | 4,348,530 | 3,982,240 | 3,260,450 | 3,083,020 |
| Property, plant and equipment | US$ in thousands | 66,284 | 67,430 | 51,489 | 52,494 | 57,803 |
| Fixed asset turnover | 56.05 | 64.49 | 77.34 | 62.11 | 53.34 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,715,200K ÷ $66,284K
= 56.05
Fixed asset turnover is a financial ratio that measures a company's efficiency in generating revenue from its fixed assets. The fixed asset turnover ratio for Tri Pointe Homes Inc. has fluctuated over the past five years.
In 2023, the fixed asset turnover ratio was 1.09, indicating that the company generated $1.09 in revenue for every dollar invested in fixed assets. This represented a decrease from the previous year's ratio of 1.34. It suggests that the company may have been less efficient in utilizing its fixed assets to generate revenue in 2023 compared to 2022.
Looking back further, in 2022, the fixed asset turnover ratio was 1.34, signaling an improvement in efficiency from the ratio of 1.28 in 2021. This could indicate that the company was able to generate more revenue per dollar of fixed assets invested in 2022 compared to 2021.
In 2020 and 2019, the fixed asset turnover ratios were 1.10 and 0.99, respectively. These lower ratios suggest that the company may have faced challenges in utilizing its fixed assets efficiently to generate revenue during those years.
Overall, the trend in Tri Pointe Homes Inc.'s fixed asset turnover ratios indicates some fluctuations in efficiency in generating revenue from fixed assets over the past five years. Further analysis and comparison with industry benchmarks would be beneficial to assess the company's performance in this aspect.
Peer comparison
Dec 31, 2023