Tractor Supply Company (TSCO)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,883,200 | 14,555,700 | 14,204,700 | 12,731,100 | 10,620,400 |
| Property, plant and equipment | US$ in thousands | — | — | 2,083,620 | 4,403,660 | 1,248,960 |
| Fixed asset turnover | — | — | 6.82 | 2.89 | 8.50 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,883,200K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Tractor Supply Company's fixed asset turnover has fluctuated over the years, ranging from 2.89 to 8.50.
In 2020, the company achieved a high fixed asset turnover ratio of 8.50, indicating that it generated $8.50 in revenue for every dollar invested in fixed assets. This suggests a strong efficiency in utilizing its fixed assets to drive sales.
However, there was a significant decline in the fixed asset turnover ratio in 2021 to 2.89, which may indicate a decrease in the company's ability to generate sales relative to its investment in fixed assets. This could be a sign of underutilization or inefficiency in managing fixed assets during that period.
In 2022, the fixed asset turnover ratio improved to 6.82, suggesting a rebound in the efficiency of utilizing fixed assets to generate revenue. This shows a potential optimization in the company's asset management strategies.
However, the data for 2023 and 2024 is not available (denoted by "—"), making it challenging to assess the company's fixed asset turnover for those years. It is essential for Tractor Supply Company to continue monitoring and managing its fixed asset turnover to ensure efficient utilization of its fixed assets for revenue generation.
Peer comparison
Dec 31, 2024