Upbound Group Inc. (UPBD)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,320,560 | 3,992,410 | 4,245,390 | 4,583,450 | 2,814,190 |
| Property, plant and equipment | US$ in thousands | 254,151 | 273,118 | 295,371 | 308,098 | 141,641 |
| Fixed asset turnover | 17.00 | 14.62 | 14.37 | 14.88 | 19.87 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,320,560K ÷ $254,151K
= 17.00
The fixed asset turnover ratio for Upbound Group Inc. has shown a declining trend over the past five years, decreasing from 19.87 in December 31, 2020, to 14.88 in December 31, 2021, and further dropping to 14.37 in December 31, 2022. However, there was a slight increase to 14.62 in December 31, 2023, before experiencing a more significant uptick to 17.00 in December 31, 2024.
The declining trend in the fixed asset turnover ratio from 2020 to 2022 may indicate that the company's fixed assets are being less efficiently utilized to generate sales revenue. This could be a cause for concern as it suggests the company may not be maximizing the productivity of its fixed assets.
The subsequent increase in the fixed asset turnover ratio in 2023 and 2024 is a positive sign, showing that the efficiency of using fixed assets to generate revenue improved. This may indicate better management of fixed assets or increased sales generated from the same level of fixed assets.
Overall, it is essential for Upbound Group Inc. to closely monitor and analyze its fixed asset turnover ratio to ensure optimal utilization of fixed assets and maintain or improve efficiency in generating revenue from these assets.
Peer comparison
Dec 31, 2024