Westinghouse Air Brake Technologies Corp (WAB)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,433,000 | 9,244,000 | 8,784,000 | 8,442,000 | 8,182,000 | 7,955,700 | 7,790,000 | 7,757,800 | 7,664,100 | 7,587,500 | 7,552,200 | 7,268,200 | 7,339,800 | 7,743,100 | 7,858,800 | 8,349,740 | 8,022,180 | 6,771,660 | 5,880,540 | 4,781,280 |
| Property, plant and equipment | US$ in thousands | 1,485,000 | 1,419,000 | 1,443,000 | 1,422,000 | 1,429,000 | 1,402,000 | 1,428,000 | 1,468,000 | 1,497,000 | 1,509,000 | 1,544,300 | 1,575,500 | 1,601,000 | 1,603,700 | 1,612,400 | 1,623,000 | 1,655,800 | 1,622,700 | 1,646,100 | 1,634,970 |
| Fixed asset turnover | 6.35 | 6.51 | 6.09 | 5.94 | 5.73 | 5.67 | 5.46 | 5.28 | 5.12 | 5.03 | 4.89 | 4.61 | 4.58 | 4.83 | 4.87 | 5.14 | 4.84 | 4.17 | 3.57 | 2.92 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $9,433,000K ÷ $1,485,000K
= 6.35
Westinghouse Air Brake Technologies Corp has shown a consistent improvement in its fixed asset turnover ratio over the past eight quarters. The fixed asset turnover ratio measures the efficiency of a company in generating revenue from its investments in fixed assets.
Based on the data provided, the company's fixed asset turnover ratio has increased steadily from 5.39 in Q1 2022 to 6.52 in Q4 2023. This indicates that the company is generating $6.52 in revenue for every $1 invested in fixed assets in the most recent quarter.
The upward trend in the fixed asset turnover ratio suggests that Westinghouse Air Brake Technologies Corp is utilizing its fixed assets more efficiently to generate sales. This improvement could be a result of better asset utilization, operational efficiency, or a combination of both.
Overall, the increasing trend in the fixed asset turnover ratio reflects positively on the company's ability to generate revenue from its fixed assets and indicates improved efficiency in utilizing its capital investments.
Peer comparison
Dec 31, 2023