Wabash National Corporation (WNC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,536,500 | 2,502,130 | 1,803,270 | 1,481,890 | 2,319,140 |
| Property, plant and equipment | US$ in thousands | 319,980 | 271,116 | 229,725 | 206,876 | 221,346 |
| Fixed asset turnover | 7.93 | 9.23 | 7.85 | 7.16 | 10.48 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,536,500K ÷ $319,980K
= 7.93
Fixed asset turnover measures how efficiently a company utilizes its fixed assets to generate sales revenue. A higher fixed asset turnover indicates better utilization of these assets.
Analyzing Wabash National Corp.'s fixed asset turnover over the past five years, we observe fluctuations in the ratio. In 2023, the fixed asset turnover was 7.79, a decrease from the previous year's ratio of 9.23 in 2022. The ratio in 2023 indicates that for every dollar of fixed assets, Wabash National generated $7.79 in sales.
Looking back further, we see the ratio was relatively stable in 2021 at 7.76 and slightly lower in 2020 at 7.07. However, there was a notable peak in 2019 with a fixed asset turnover of 10.48, signaling a high level of efficiency in utilizing fixed assets to generate sales revenue.
Overall, while there have been fluctuations in Wabash National Corp.'s fixed asset turnover in recent years, the company generally demonstrates a reasonable efficiency in generating sales revenue from its fixed assets. Monitoring this ratio over time can provide insights into the company's operational efficiency and asset management strategies.