Westinghouse Air Brake Technologies Corp (WAB)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,432,000 | 8,179,000 | 7,657,000 | 7,339,800 | 7,952,000 |
| Property, plant and equipment | US$ in thousands | 1,485,000 | 1,429,000 | 1,497,000 | 1,601,000 | 1,655,800 |
| Fixed asset turnover | 6.35 | 5.72 | 5.11 | 4.58 | 4.80 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,432,000K ÷ $1,485,000K
= 6.35
Westinghouse Air Brake Technologies Corp's fixed asset turnover has shown a positive trend over the past five years, increasing from 4.95 in 2019 to 6.52 in 2023. This indicates that the company is generating more revenue for every dollar invested in fixed assets.
A higher fixed asset turnover ratio generally suggests that the company is efficiently utilizing its fixed assets to generate sales. It could indicate effective asset management, such as optimizing production capacity or upgrading equipment to enhance productivity.
The upward trend in fixed asset turnover for Westinghouse Air Brake Technologies Corp suggests improving operational efficiency and potentially better profitability in recent years. However, further analysis in conjunction with other financial metrics is needed to gain a holistic view of the company's financial performance.
Peer comparison
Dec 31, 2023