NCR Voyix Corporation (VYX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,483,000 | 7,560,000 | 7,156,000 | 6,207,000 | 6,915,000 |
| Property, plant and equipment | US$ in thousands | 212,000 | 227,000 | 703,000 | 373,000 | 413,000 |
| Fixed asset turnover | 16.43 | 33.30 | 10.18 | 16.64 | 16.74 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,483,000K ÷ $212,000K
= 16.43
The fixed asset turnover ratio for NCR Voyix Corporation has displayed fluctuations over the past five years. The ratio was 16.43 in 2023, significantly lower than 33.30 in 2022, indicating a decrease in the efficiency of generating sales from fixed assets. This decline may imply a less effective utilization of the company's fixed assets to generate revenue compared to the previous year. In 2021, the ratio was 10.18, suggesting a relatively lower turnover rate and potentially indicating that the company was not able to efficiently convert its fixed assets into sales during that period. However, in 2020 and 2019, the fixed asset turnover ratios were 16.64 and 16.74, respectively, showing a similar level of efficiency in utilizing fixed assets to generate revenue in these years.
It is essential for the company to analyze the reasons behind the fluctuations in the fixed asset turnover ratio to identify potential inefficiencies in asset utilization and implement strategies to improve efficiency in the future. Effective management of fixed assets is crucial for maximizing profitability and ensuring sustainable growth in the long term.