Willscot Mobile Mini Holdings Corp A (WSC)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,395,720 | 2,364,770 | 2,142,620 | 1,894,900 | 1,367,640 |
| Property, plant and equipment | US$ in thousands | — | — | 3,077,290 | 3,080,980 | 535,744 |
| Fixed asset turnover | — | — | 0.70 | 0.62 | 2.55 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,395,720K ÷ $—K
= —
The analysis of Willscot Mobile Mini Holdings Corp A's fixed asset turnover ratio over the provided period indicates notable fluctuations in operational efficiency concerning fixed assets. As of December 31, 2020, the ratio stood at 2.55, suggesting the company was effectively generating a substantial level of revenue per dollar invested in fixed assets, indicative of strong utilization of its asset base.
However, by December 31, 2021, the ratio declined sharply to 0.62, reflecting a significant decrease in asset productivity. This decline may be attributable to factors such as increased capital expenditure that has yet to translate into increased revenue, a reduction in sales or utilization rates, or overcapacity issues resulting from strategic investments or operational adjustments.
In the subsequent year, by December 31, 2022, the fixed asset turnover showed a marginal improvement to 0.70, yet remained substantially below the 2020 level. This modest increase suggests some recovery or more efficient use of fixed assets, though it is insufficient to restore the previous efficiency levels.
Data for the years ending December 31, 2023, and December 31, 2024, are unavailable, with the respective ratios unreported or not applicable. The absence of this data precludes further trend analysis, limiting insight into the company's ongoing operational efficiency concerning fixed assets beyond 2022.
Overall, the trend from 2020 to 2022 indicates a period of decreased fixed asset utilization efficiency following 2020, with a potential recovery beginning in 2022. Continuous monitoring of this ratio is necessary to interpret whether the company is effectively utilizing its fixed assets in alignment with its revenue-generating activities in subsequent periods.