WD-40 Company (WDFC)
Fixed asset turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 589,498 | 532,231 | 517,489 | 488,109 | 408,498 |
| Property, plant and equipment | US$ in thousands | 62,983 | 66,791 | 65,977 | 70,145 | 60,759 |
| Fixed asset turnover | 9.36 | 7.97 | 7.84 | 6.96 | 6.72 |
August 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $589,498K ÷ $62,983K
= 9.36
The fixed asset turnover ratio indicates how efficiently WD-40 Company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio implies that the company is effectively using its fixed assets to generate sales.
Over the past five years, WD-40 Company's fixed asset turnover ratio has shown a generally increasing trend, signaling improved efficiency in utilizing its fixed assets. In the most recent year, ending August 31, 2024, the company achieved a fixed asset turnover ratio of 9.36, the highest level in the five-year period analyzed. This indicates that for every dollar invested in fixed assets, WD-40 Company generated $9.36 in revenue, showcasing a strong efficiency in asset utilization.
The consistent improvement in the fixed asset turnover ratio is a positive indicator of WD-40 Company's ability to generate sales relative to its investment in fixed assets. This trend suggests effective management of fixed assets and efficient operations within the company.
Peer comparison
Aug 31, 2024