Zurn Elkay Water Solutions Corporation (ZWS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,530,500 | 1,281,800 | 910,900 | 2,068,300 | 2,050,900 |
| Property, plant and equipment | US$ in thousands | 159,500 | 183,000 | 64,400 | 378,800 | 383,000 |
| Fixed asset turnover | 9.60 | 7.00 | 14.14 | 5.46 | 5.35 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,530,500K ÷ $159,500K
= 9.60
The fixed asset turnover ratio measures the efficiency with which a company generates sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.
Zurn Elkay Water Solutions Corporation's fixed asset turnover has shown fluctuations over the past five years. In 2023, the company's fixed asset turnover ratio was 9.60, reflecting a significant increase compared to 7.00 in 2022. This indicates that the company generated $9.60 in sales for every dollar invested in fixed assets during 2023.
The peak performance in terms of fixed asset turnover was observed in 2021, with a ratio of 14.14, suggesting a high level of efficiency in utilizing fixed assets to drive sales. However, the ratio dropped in 2022 before rebounding in 2023.
Comparing the fixed asset turnover ratios to those of 2020 and 2019, the company has shown consistent improvement in utilizing its fixed assets to generate sales revenue. The ratios for 2020 and 2019 were 5.46 and 5.35, respectively, indicating a positive trend in asset efficiency over the years.
Overall, the increasing trend in Zurn Elkay Water Solutions Corporation's fixed asset turnover ratio signifies improved efficiency in utilizing fixed assets to drive sales growth, which can be a positive indicator of the company's operational effectiveness and potentially higher profitability.
Peer comparison
Dec 31, 2023