Tootsie Roll Industries Inc (TR)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 766,225 | 759,321 | 723,875 | 708,415 | 688,173 | 666,465 | 637,169 | 608,787 | 571,396 | 406,735 | 380,224 | 345,350 | 345,389 | 345,244 | 369,369 | 394,892 | 392,371 | 518,821 | 518,400 | 518,257 |
| Property, plant and equipment | US$ in thousands | 222,978 | 217,421 | 214,321 | 211,944 | 212,043 | 210,846 | 212,130 | 210,133 | 208,906 | 206,326 | 198,208 | 187,573 | 187,328 | 184,918 | 184,221 | 185,958 | 188,455 | 186,742 | 186,730 | 187,008 |
| Fixed asset turnover | 3.44 | 3.49 | 3.38 | 3.34 | 3.25 | 3.16 | 3.00 | 2.90 | 2.74 | 1.97 | 1.92 | 1.84 | 1.84 | 1.87 | 2.01 | 2.12 | 2.08 | 2.78 | 2.78 | 2.77 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $766,225K ÷ $222,978K
= 3.44
Tootsie Roll Industries, Inc. has shown a consistent improvement in its fixed asset turnover over the eight quarters analyzed. The fixed asset turnover ratio measures the efficiency of the company in generating sales from its fixed assets. The company's fixed asset turnover has been steadily increasing from 2.89 in Q1 2022 to 3.56 in Q4 2023, indicating that the company is utilizing its fixed assets more efficiently to generate revenue.
The trend of increasing fixed asset turnover may suggest that Tootsie Roll Industries is managing its fixed assets effectively and maximizing their productivity. A higher fixed asset turnover ratio generally indicates that the company is generating more revenue per dollar invested in fixed assets.
Overall, the improving trend in fixed asset turnover reflects positively on Tootsie Roll Industries' operational efficiency and effectiveness in utilizing its fixed assets to drive sales. However, it is essential to consider other factors and ratios in conjunction with fixed asset turnover for a comprehensive analysis of the company's financial performance and efficiency.
Peer comparison
Dec 31, 2023