Woodward Inc (WWD)
Fixed asset turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,311,919 | 3,214,747 | 3,156,401 | 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 |
| Property, plant and equipment | US$ in thousands | 940,715 | 917,730 | 921,355 | 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 |
| Fixed asset turnover | 3.52 | 3.50 | 3.43 | 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 |
September 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,311,919K ÷ $940,715K
= 3.52
The fixed asset turnover for Woodward Inc has shown a generally increasing trend over the analyzed period. The ratio measures the efficiency with which the company generates sales revenue from its investment in fixed assets.
From December 2019 to September 2024, the fixed asset turnover has increased from 2.84 to 3.52. This indicates that the company is utilizing its fixed assets more efficiently to generate sales. A higher fixed asset turnover ratio implies that the company is generating more revenue per dollar of investment in fixed assets.
The consistent improvement in the fixed asset turnover ratio suggests that Woodward Inc has been effectively managing its fixed assets to drive sales growth. This can be a positive indicator of operational efficiency and effective asset utilization within the company.
However, it is important to consider other factors such as industry benchmarks, capital expenditure decisions, and future growth projections to gain a comprehensive understanding of Woodward Inc's overall financial performance.