Woodward Inc (WWD)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,334,880 | 2,865,510 | 2,353,550 | 2,214,170 | 2,467,570 |
| Property, plant and equipment | US$ in thousands | 940,715 | 913,094 | 910,472 | 950,569 | 997,415 |
| Fixed asset turnover | 3.55 | 3.14 | 2.58 | 2.33 | 2.47 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,334,880K ÷ $940,715K
= 3.55
Woodward Inc's fixed asset turnover ratio has exhibited a positive trend over the past five years, indicating an improvement in the efficiency of utilizing its fixed assets to generate revenue. The ratio increased from 2.47 in 2020 to 3.55 in 2024, reaching its highest point during this period. This suggests that the company has been able to generate more sales relative to its investment in fixed assets.
A higher fixed asset turnover ratio generally reflects better operational efficiency and asset utilization. Woodward Inc's consistent improvement in this ratio signifies effective management of its fixed assets to drive revenue growth. This trend could result from various factors, such as effective production processes, improved inventory management, or optimized asset utilization.
Overall, Woodward Inc's increasing fixed asset turnover ratio indicates a positive performance in terms of efficiently leveraging its fixed assets to generate revenue over the years. It is essential for the company to maintain this trend to sustain its competitiveness and profitability in the long term.