Vulcan Materials Company (VMC)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	7,781,900	7,315,200	5,552,200	4,856,800	4,929,100
Property, plant and equipment	US$ in thousands	6,217,700	6,051,300	5,546,800	4,426,000	4,316,040
Fixed asset turnover		1.25	1.21	1.00	1.10	1.14

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,781,900K ÷ $6,217,700K
= 1.25

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. A higher fixed asset turnover indicates that the company is more efficient in utilizing its fixed assets to generate sales.

Based on the data provided for Vulcan Materials Co, we can observe a fluctuating trend in the fixed asset turnover ratio over the past five years. In 2023, the fixed asset turnover ratio increased to 1.25 from 1.21 in 2022. This improvement suggests that Vulcan Materials Co was able to generate more sales revenue relative to its investment in fixed assets in 2023 compared to the previous year.

In 2021, the fixed asset turnover ratio was relatively low at 1.00, indicating that the company was less efficient in utilizing its fixed assets to generate sales revenue. However, there was an improvement in 2022 and 2023, with the ratio increasing to 1.21 and 1.25, respectively.

Overall, the trend in Vulcan Materials Co's fixed asset turnover ratio shows variability over the five-year period, with some fluctuations. It is important for the company to continue monitoring and improving its efficiency in utilizing fixed assets to drive sales growth and profitability in the future.