Waters Corporation (WAT)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,922,900 | 2,842,300 | 2,892,160 | 2,735,940 | 2,309,300 |
| Property, plant and equipment | US$ in thousands | 651,000 | 639,073 | 582,217 | 547,913 | 494,003 |
| Fixed asset turnover | 4.49 | 4.45 | 4.97 | 4.99 | 4.67 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,922,900K ÷ $651,000K
= 4.49
The fixed asset turnover ratio for Waters Corporation has shown a generally positive trend over the past five years, increasing from 4.67 in December 2020 to 4.99 in December 2021. This indicates that the company generated $4.99 in net sales revenue for every dollar invested in fixed assets in 2021.
Although there was a slight dip in the ratio to 4.97 in December 2022, Waters Corporation maintained a strong level of efficiency in utilizing its fixed assets to generate revenue. However, the ratio decreased further to 4.45 in December 2023 before recovering slightly to 4.49 in December 2024.
Overall, the fluctuation in the fixed asset turnover ratio suggests some variability in the company's ability to efficiently leverage its fixed assets to drive sales during the period under review. Further analysis of the underlying reasons for these fluctuations could provide insights into Waters Corporation's operational performance and efficiency in managing its fixed assets.
Peer comparison
Dec 31, 2024