Tractor Supply Company (TSCO)
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 | 14,555,740 | 14,902,280 | 14,761,100 | 14,479,810 | 14,204,720 | 13,517,620 | 13,264,750 | 12,962,900 | 12,731,110 | 20,032,230 | 19,620,870 | 19,195,640 | 18,362,490 | 9,933,870 | 9,311,440 | 8,488,890 | 8,351,920 | 8,293,410 | 8,190,890 | 8,050,360 |
| Property, plant and equipment | US$ in thousands | 2,437,180 | 2,273,650 | 2,185,480 | 2,144,770 | 2,083,620 | 1,843,320 | 1,744,560 | 1,655,750 | 1,617,810 | 1,441,700 | 1,333,850 | 1,287,000 | 1,248,960 | 1,178,620 | 1,148,220 | 1,143,190 | 1,163,960 | 1,143,070 | 1,135,310 | 1,120,870 |
| Fixed asset turnover | 5.97 | 6.55 | 6.75 | 6.75 | 6.82 | 7.33 | 7.60 | 7.83 | 7.87 | 13.89 | 14.71 | 14.92 | 14.70 | 8.43 | 8.11 | 7.43 | 7.18 | 7.26 | 7.21 | 7.18 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $14,555,740K ÷ $2,437,180K
= 5.97
The fixed asset turnover ratio for Tractor Supply Company has shown fluctuations over the past few quarters but generally has remained at a relatively high level. The ratio indicates that the company is efficient in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio signifies that the company is effectively utilizing its fixed assets to generate sales.
For instance, in the most recent quarter, ending December 31, 2023, the fixed asset turnover ratio was 5.97, indicating that for every dollar invested in fixed assets, the company generated $5.97 in sales revenue. This was a slight decrease compared to the previous quarter but still at a healthy level.
Looking at the trend over multiple quarters, the company has consistently maintained a fixed asset turnover ratio above 7.0, with peaks exceeding 14 in some quarters, such as in September 2021. This reflects the company's strong operational efficiency in utilizing its fixed assets to drive sales growth.
Overall, the trend in Tractor Supply Company's fixed asset turnover ratio suggests that the company has been effectively managing its fixed assets to drive revenue generation, which is a positive indicator of its operational efficiency and asset utilization.
Peer comparison
Dec 31, 2023