Woodward Inc (WWD)

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	3,033,346	2,865,507	2,731,573	2,548,442	2,427,467	2,353,549	2,281,598	2,224,172	2,218,179	2,214,167	2,184,932	2,152,575	2,292,043	2,474,487	2,679,760	2,904,004	2,938,143	2,866,041	2,848,863	2,687,895
Property, plant and equipment	US$ in thousands	931,253	913,094	910,544	919,672	921,665	910,472	913,468	923,651	934,403	950,569	952,800	965,205	986,030	997,415	1,008,260	1,019,080	1,033,580	1,058,780	1,063,080	1,064,390
Fixed asset turnover		3.26	3.14	3.00	2.77	2.63	2.58	2.50	2.41	2.37	2.33	2.29	2.23	2.32	2.48	2.66	2.85	2.84	2.71	2.68	2.53

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,033,346K ÷ $931,253K
= 3.26

Fixed asset turnover is a key financial ratio that measures a company's efficiency in generating revenue from its investments in fixed assets. In the case of Woodward Inc, the trend of the fixed asset turnover ratio over the past eight quarters is showing a generally positive trajectory.

The fixed asset turnover ratio has been consistently increasing from 2.44 in Q2 2022 to 3.31 in Q1 2024. This indicates that Woodward Inc has been able to generate more revenue relative to its investment in fixed assets over time.

The increasing trend suggests that the company is utilizing its fixed assets more efficiently to generate sales, which can be a positive indicator of operational efficiency and effective asset management. This improvement could be attributed to better production processes, increased sales, or optimal utilization of fixed assets.

Overall, the rising trend in Woodward Inc's fixed asset turnover is a positive signal for investors and stakeholders as it reflects the company's ability to maximize the productivity of its fixed assets and generate more revenue from its investments in property, plant, and equipment.