WD-40 Company (WDFC)
Fixed asset turnover
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 587,047 | 570,084 | 555,159 | 545,753 | 531,830 | 524,985 | 507,863 | 508,545 | 517,038 | 501,187 | 514,594 | 497,126 | 488,109 | 484,515 | 446,357 | 434,501 | 408,498 | 403,596 | 419,338 | 420,624 |
| Property, plant and equipment | US$ in thousands | 62,983 | 63,903 | 64,575 | 65,704 | 66,791 | 66,636 | 65,791 | 65,658 | 65,977 | 69,156 | 69,334 | 68,980 | 70,145 | 68,968 | 67,077 | 62,607 | 60,759 | 56,712 | 57,910 | 50,103 |
| Fixed asset turnover | 9.32 | 8.92 | 8.60 | 8.31 | 7.96 | 7.88 | 7.72 | 7.75 | 7.84 | 7.25 | 7.42 | 7.21 | 6.96 | 7.03 | 6.65 | 6.94 | 6.72 | 7.12 | 7.24 | 8.40 |
August 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $587,047K ÷ $62,983K
= 9.32
The fixed asset turnover ratio for WD-40 Company has shown a generally positive trend over the past few quarters, indicating an efficient utilization of the company's fixed assets to generate sales. The ratio has been consistently above 7, which is a healthy sign for the company.
There was a slight fluctuation in the ratio over the period from Nov 30, 2019, to Aug 31, 2023, but overall, the trend has been upward. The ratio peaked at 9.32 on Aug 31, 2024, indicating that for every dollar invested in fixed assets, WD-40 generated $9.32 in sales.
This steady improvement in the fixed asset turnover ratio reflects positively on the company's operational efficiency and indicates that WD-40 has been successful in optimizing the use of its fixed assets to drive revenue growth.
Peer comparison
Aug 31, 2024