Whirlpool Corporation (WHR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 18,998,000 | 17,719,000 | 21,915,000 | 19,274,000 | 20,669,000 |
| Property, plant and equipment | US$ in thousands | 2,234,000 | 2,102,000 | 2,805,000 | 3,199,000 | 3,301,000 |
| Fixed asset turnover | 8.50 | 8.43 | 7.81 | 6.03 | 6.26 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $18,998,000K ÷ $2,234,000K
= 8.50
The fixed asset turnover ratio for Whirlpool Corp. has shown a fluctuating trend over the past five years. In 2023, the ratio decreased to 8.71 from 9.38 in 2022, indicating that the company generated $8.71 in sales for each dollar invested in fixed assets. This signifies a slight decrease in efficiency in utilizing its fixed assets to generate revenue compared to the previous year.
However, it is important to note that the 2023 ratio is still relatively high compared to the ratios in 2020 and 2019, which were 6.08 and 6.19, respectively. This suggests an improvement in efficiency in 2023 compared to those years. In 2021, the ratio was 7.84, indicating a relatively higher efficiency in utilizing fixed assets to generate sales compared to 2023.
Overall, Whirlpool Corp. has shown varying levels of efficiency in utilizing its fixed assets to generate revenue over the past five years, with 2023 experiencing a slight decrease in efficiency compared to the previous year but an improvement compared to earlier years.
Peer comparison
Dec 31, 2023