Whirlpool Corporation (WHR)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 18,998,000 | 17,159,000 | 17,116,000 | 17,137,000 | 17,721,000 | 20,158,000 | 20,845,000 | 21,538,000 | 21,915,000 | 21,939,000 | 21,757,000 | 20,351,000 | 19,321,000 | 18,905,000 | 19,220,000 | 20,282,000 | 20,708,000 | 20,986,000 | 20,698,000 | 20,736,000 |
| Property, plant and equipment | US$ in thousands | 2,234,000 | 2,150,000 | 2,134,000 | 2,104,000 | 2,102,000 | 2,569,000 | 2,614,000 | 2,764,000 | 2,805,000 | 2,713,000 | 2,734,000 | 2,785,000 | 3,199,000 | 3,136,000 | 3,132,000 | 3,156,000 | 3,301,000 | 3,203,000 | 3,318,000 | 3,358,000 |
| Fixed asset turnover | 8.50 | 7.98 | 8.02 | 8.14 | 8.43 | 7.85 | 7.97 | 7.79 | 7.81 | 8.09 | 7.96 | 7.31 | 6.04 | 6.03 | 6.14 | 6.43 | 6.27 | 6.55 | 6.24 | 6.18 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $18,998,000K ÷ $2,234,000K
= 8.50
The fixed asset turnover ratio for Whirlpool Corp. has been consistently high over the past eight quarters, ranging from 7.80 to 9.38. This indicates that the company generates significant revenue relative to its investment in fixed assets. A higher fixed asset turnover ratio typically suggests that the company is effectively utilizing its fixed assets to generate sales.
The trend of increasing fixed asset turnover ratios over the periods Q1 2022 to Q1 2023 indicates that Whirlpool Corp. has been improving its efficiency in generating sales from its fixed assets. This trend suggests that the company may have streamlined its operations, improved asset utilization, or increased sales without a proportionate increase in fixed assets.
Overall, a consistently high fixed asset turnover ratio reflects positively on Whirlpool Corp.'s operational efficiency and ability to generate revenue from its fixed asset base. It also indicates that the company has been effectively managing its fixed assets to contribute to its revenue generation.
Peer comparison
Dec 31, 2023