Valmont Industries Inc (VMI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,116,820 | 4,345,250 | 3,459,920 | 2,854,220 | 2,732,240 |
| Property, plant and equipment | US$ in thousands | 617,394 | 595,578 | 598,605 | 597,727 | 558,129 |
| Fixed asset turnover | 6.67 | 7.30 | 5.78 | 4.78 | 4.90 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,116,820K ÷ $617,394K
= 6.67
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio indicates better asset utilization efficiency.
Looking at Valmont Industries Inc's fixed asset turnover ratios over the past five years, we can observe fluctuations in the company's efficiency in generating sales from its fixed assets. The trend shows an improvement in asset utilization efficiency from 2019 to 2022, with ratios increasing from 4.90 to 7.30. This signifies that the company was able to generate more sales relative to its investment in fixed assets during this period.
However, in 2023, the fixed asset turnover ratio decreased to 6.67, indicating a slight decline in asset efficiency compared to the previous year. Despite this decrease, the ratio remains relatively high, suggesting that the company is still effectively utilizing its fixed assets to generate revenue.
Overall, Valmont Industries Inc has demonstrated a generally strong performance in terms of fixed asset turnover, with the ratios consistently exceeding 4.00 over the past five years. This indicates efficient management of fixed assets to drive revenue growth and maximize returns for shareholders.
Peer comparison
Dec 31, 2023