WESCO International Inc (WCC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 22,385,200 | 21,420,100 | 18,226,400 | 12,326,000 | 8,358,920 |
| Property, plant and equipment | US$ in thousands | 423,600 | 402,700 | 379,012 | 399,157 | 181,448 |
| Fixed asset turnover | 52.85 | 53.19 | 48.09 | 30.88 | 46.07 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $22,385,200K ÷ $423,600K
= 52.85
Fixed asset turnover measures how efficiently a company generates sales revenue from its investment in fixed assets. The trend of Wesco International, Inc.'s fixed asset turnover over the past five years shows fluctuations. In 2023, the fixed asset turnover ratio decreased slightly to 52.85 compared to 53.19 in 2022. This indicates that, on average, the company generated $52.85 in sales for every dollar invested in fixed assets in 2023.
Despite the slight decrease in 2023, Wesco International, Inc. has generally maintained a high fixed asset turnover ratio, indicating effective asset utilization. The company's performance in 2023 was stronger compared to 2020 and 2019 when the fixed asset turnover ratios were 30.88 and 46.07, respectively. The company has demonstrated an ability to efficiently utilize its fixed assets over the years. However, it is essential to monitor this ratio over time to ensure continued efficiency in asset management and productivity.
Peer comparison
Dec 31, 2023