Tootsie Roll Industries Inc (TR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 766,225 | 688,173 | 571,397 | 472,151 | 529,311 |
| Property, plant and equipment | US$ in thousands | 222,978 | 212,043 | 208,906 | 187,328 | 188,455 |
| Fixed asset turnover | 3.44 | 3.25 | 2.74 | 2.52 | 2.81 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $766,225K ÷ $222,978K
= 3.44
Tootsie Roll Industries, Inc. has shown a consistent and favorable trend in its fixed asset turnover ratio over the past five years. The company's fixed asset turnover ratio has been steadily increasing year over year, indicating that Tootsie Roll Industries has been more efficient in generating sales revenue relative to its investment in fixed assets.
The fixed asset turnover ratio increased from 2.82 in 2019 to 3.56 in 2023, showing significant improvement in the utilization of fixed assets to generate sales. This implies that the company has managed its fixed assets more effectively, either by increasing sales or by optimizing the use of existing assets.
The increasing trend in fixed asset turnover ratios suggests that Tootsie Roll Industries has been able to make better use of its fixed assets over time, which is a positive indicator of operational efficiency and profitability. This improvement may be driven by various factors such as improvements in manufacturing processes, better inventory management, or increased sales volumes relative to fixed asset investments.
Overall, the upward trend in Tootsie Roll Industries' fixed asset turnover ratio reflects positively on the company's ability to generate sales from its fixed asset base, indicating effective asset management and operational performance.
Peer comparison
Dec 31, 2023