Upbound Group Inc. (UPBD)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,992,410 | 4,245,390 | 4,583,450 | 2,814,190 | 2,669,850 |
| Property, plant and equipment | US$ in thousands | 273,118 | 295,371 | 308,098 | 141,641 | 166,138 |
| Fixed asset turnover | 14.62 | 14.37 | 14.88 | 19.87 | 16.07 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,992,410K ÷ $273,118K
= 14.62
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Upbound Group Inc.'s fixed asset turnover has shown some fluctuations over the past five years.
In 2023, the fixed asset turnover ratio was 14.62, slightly higher than the previous year's ratio of 14.37. This indicates that Upbound Group Inc. generated $14.62 in revenue for every $1 invested in fixed assets during that year. Despite the increase, the ratio remains relatively stable, suggesting consistency in utilizing its fixed assets efficiently.
Comparing to 2021 and 2020 when the ratios were 14.88 and 19.87, respectively, there was a noticeable decrease in the fixed asset turnover ratio. This decline could be due to changes in the company's asset base or revenue generation strategies during these years. However, it is important to note that even with the decrease, Upbound Group Inc. still maintained a relatively high level of efficiency in utilizing its fixed assets compared to the industry average.
Furthermore, in 2019, the fixed asset turnover ratio was 16.07, which was lower than 2020 but higher than the most recent years. This implies that Upbound Group Inc. was more efficient in generating revenue from its fixed assets in 2019 compared to the following years.
Overall, Upbound Group Inc. has shown a consistent ability to efficiently utilize its fixed assets to generate revenue, with some variations in the ratio over the years. The company may want to further analyze the factors contributing to these fluctuations to ensure continued optimal utilization of its fixed asset base.
Peer comparison
Dec 31, 2023