Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Parker-Hannifin Corp., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited a generally increasing trend from mid-2017 through to late 2018, rising from approximately 6.21 to a peak around 8.12. After this peak, there was a notable decline lasting until mid-2020, where the ratio decreased to approximately 5.87. Post mid-2020, the ratio recovered steadily, reaching around 7.47 by the end of 2021, before experiencing another decline towards late 2022, falling back to about 6.05. This pattern suggests periods of improved efficiency in using fixed assets followed by contractions, possibly due to changes in asset base or operational efficiency.
- Total Asset Turnover
- The total asset turnover ratio showed a moderate increase from 0.78 in mid-2017 to a high of roughly 0.95 by late 2018. Thereafter, a gradual downward trend ensued, with occasional minor fluctuations, resulting in a reduction to about 0.55 by the end of 2022. This decline indicates decreasing efficiency in utilizing overall assets to generate sales over the analyzed timeframe, potentially reflecting increased asset holdings or diminished sales generation capacity.
- Equity Turnover
- Equity turnover began at around 2.29 in mid-2017 and experienced modest fluctuations, climbing slightly to approximately 2.5 by late 2018. Subsequently, a consistent decline is observed, with the ratio dropping from about 2.4 to a low near 1.71 by late 2021. A mild recovery occurred towards the end of 2022, with the ratio increasing to approximately 1.84. This declining trend in equity turnover suggests a reduction in revenue generated per unit of shareholder equity, potentially indicating changes in capital structure effectiveness or revenue generation relative to equity.
Net Fixed Asset Turnover
Parker-Hannifin Corp., net fixed asset turnover calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||||||
| Net sales | 4,674,811) | 4,232,775) | 4,187,832) | 4,086,387) | 3,824,580) | 3,762,809) | 3,958,869) | 3,746,326) | 3,411,905) | 3,230,540) | 3,160,603) | 3,702,432) | 3,497,974) | 3,334,511) | 3,681,467) | 3,687,518) | 3,472,045) | 3,479,294) | 3,817,477) | 3,749,591) | 3,370,673) | 3,364,651) | 3,496,238) | 3,119,139) | 2,670,804) | 2,743,131) | ||||||||
| Property, plant and equipment, net | 2,839,524) | 2,753,607) | 2,122,758) | 2,174,237) | 2,202,932) | 2,223,534) | 2,266,476) | 2,249,122) | 2,302,142) | 2,292,880) | 2,292,735) | 2,296,990) | 2,335,940) | 1,880,157) | 1,768,287) | 1,779,892) | 1,793,805) | 1,828,034) | 1,856,237) | 1,941,799) | 1,937,074) | 1,962,846) | 1,937,292) | 1,945,739) | 1,506,201) | 1,562,933) | ||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Net fixed asset turnover1 | 6.05 | 5.93 | 7.47 | 7.19 | 6.94 | 6.69 | 6.33 | 6.02 | 5.87 | 5.93 | 5.97 | 6.19 | 6.08 | 7.54 | 8.10 | 8.12 | 8.09 | 7.89 | 7.71 | 7.20 | 6.89 | 6.45 | 6.21 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 7.04 | 6.72 | 6.31 | 5.85 | 5.72 | 5.68 | 5.70 | 5.65 | 5.44 | 4.85 | 4.92 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 5.10 | 4.91 | 4.70 | 4.62 | 4.36 | 4.18 | 3.99 | 3.84 | 3.59 | 3.32 | 3.15 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 6.75 | 6.67 | 6.59 | 6.80 | 6.50 | 6.38 | 6.41 | 6.45 | 6.25 | 6.08 | 6.02 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| GE Aerospace | 5.58 | 5.84 | 5.08 | 5.04 | 4.83 | 4.73 | 4.55 | 4.53 | 4.45 | 4.33 | 1.63 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 6.59 | 6.57 | 6.48 | 6.54 | 6.45 | 6.27 | 6.18 | 6.28 | 6.15 | 5.88 | 5.86 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 8.46 | 8.33 | 8.27 | 8.48 | 8.48 | 8.70 | 8.83 | 9.05 | 9.17 | 9.15 | 9.07 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 4.61 | 4.53 | 4.42 | 4.50 | 4.43 | 4.37 | 4.30 | 4.39 | 4.25 | 4.10 | 3.78 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30).
1 Q2 2023 Calculation
Net fixed asset turnover
= (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
÷ Property, plant and equipment, net
= (4,674,811 + 4,232,775 + 4,187,832 + 4,086,387)
÷ 2,839,524 = 6.05
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends across the key metrics of net sales, property, plant and equipment (PP&E) net value, and net fixed asset turnover ratio from 2016 to 2022.
- Net Sales
- Net sales demonstrate a general upward trajectory over the reported periods. Beginning at approximately $2.74 billion in the third quarter of 2016, net sales show incremental growth with fluctuations, reaching a peak near $4.67 billion by the end of 2022. Some quarters, particularly mid-2020, indicate a temporary decrease likely attributable to external conditions impacting sales volume. Subsequently, a strong rebound is observed, with consistent increases recorded through 2021 and 2022. This pattern suggests resilience and recovery capability in the business over time.
- Property, Plant and Equipment, Net (PP&E)
- The net value of PP&E shows variability with a gradual increasing trend towards the later years. Initially, values hovered around $1.56 billion in late 2016 and experienced fluctuations with slight decreases into 2019, before rising sharply around late 2019 and early 2020 to approximately $2.33 billion. The PP&E value remains relatively stable through the next quarters with minor variations before reaching about $2.84 billion by the end of 2022. The substantial increase observed towards the end of the period signals significant investment or revaluation in fixed assets, which could be indicative of expansion or modernization initiatives.
- Net Fixed Asset Turnover Ratio
- Though data for the ratio is partially missing, the available figures from March 2017 onwards highlight fluctuations in utilization efficiency. Early values indicate a ratio moving from around 6.21 to a high point of approximately 8.12 in the latter half of 2018, reflecting efficient use of fixed assets to generate sales during that time. After this peak, a gradual decline in turnover ratio is observed, dropping close to 5.93 by the end of 2022. The reduction in this ratio concurrent with increased PP&E values suggests that asset growth has outpaced sales growth in recent years, possibly reflecting investments that have not yet fully translated into proportional sales increases.
Overall, net sales growth and increased investment in PP&E characterize the financial evolution of the periods reviewed. However, the declining net fixed asset turnover ratio warns of potential underutilization of new or existing assets relative to sales output, indicating an area for management focus to optimize asset productivity going forward.
Total Asset Turnover
Parker-Hannifin Corp., total asset turnover calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||||||
| Net sales | 4,674,811) | 4,232,775) | 4,187,832) | 4,086,387) | 3,824,580) | 3,762,809) | 3,958,869) | 3,746,326) | 3,411,905) | 3,230,540) | 3,160,603) | 3,702,432) | 3,497,974) | 3,334,511) | 3,681,467) | 3,687,518) | 3,472,045) | 3,479,294) | 3,817,477) | 3,749,591) | 3,370,673) | 3,364,651) | 3,496,238) | 3,119,139) | 2,670,804) | 2,743,131) | ||||||||
| Total assets | 30,520,887) | 29,954,907) | 25,943,943) | 22,545,320) | 22,395,475) | 20,236,871) | 20,341,200) | 19,841,546) | 19,827,429) | 19,785,917) | 19,738,189) | 20,365,280) | 21,043,989) | 19,568,589) | 17,576,690) | 15,477,935) | 15,307,687) | 15,425,042) | 15,320,087) | 16,237,484) | 15,965,181) | 15,731,279) | 15,489,904) | 15,325,333) | 11,731,613) | 11,970,914) | ||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Total asset turnover1 | 0.56 | 0.55 | 0.61 | 0.69 | 0.68 | 0.74 | 0.71 | 0.68 | 0.68 | 0.69 | 0.69 | 0.70 | 0.67 | 0.72 | 0.81 | 0.93 | 0.95 | 0.93 | 0.93 | 0.86 | 0.84 | 0.80 | 0.78 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 0.55 | 0.52 | 0.49 | 0.45 | 0.45 | 0.45 | 0.45 | 0.43 | 0.41 | 0.38 | 0.38 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 0.72 | 0.70 | 0.69 | 0.66 | 0.63 | 0.61 | 0.58 | 0.57 | 0.53 | 0.50 | 0.50 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 0.60 | 0.60 | 0.59 | 0.59 | 0.56 | 0.56 | 0.58 | 0.57 | 0.52 | 0.52 | 0.56 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| GE Aerospace | 0.42 | 0.43 | 0.39 | 0.40 | 0.39 | 0.37 | 0.36 | 0.30 | 0.30 | 0.29 | 0.29 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 0.58 | 0.60 | 0.57 | 0.58 | 0.55 | 0.54 | 0.53 | 0.54 | 0.53 | 0.51 | 0.51 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 1.18 | 1.21 | 1.25 | 1.24 | 1.24 | 1.28 | 1.32 | 1.28 | 1.28 | 1.28 | 1.29 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 0.44 | 0.42 | 0.42 | 0.42 | 0.41 | 0.41 | 0.40 | 0.40 | 0.39 | 0.38 | 0.35 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30).
1 Q2 2023 Calculation
Total asset turnover
= (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
÷ Total assets
= (4,674,811 + 4,232,775 + 4,187,832 + 4,086,387)
÷ 30,520,887 = 0.56
2 Click competitor name to see calculations.
- Net Sales
- The net sales figures exhibit a generally increasing trend from late 2016 through the end of 2022 with some fluctuations. Starting at approximately 2.74 billion USD in September 2016, sales rose steadily to around 3.75 billion USD by June 2018, followed by some volatility with a noticeable dip during mid-2020 coinciding with the global economic impact of the COVID-19 pandemic. After this decline, net sales resumed growth, reaching a peak of approximately 4.67 billion USD by December 2022. This trend indicates a recovery and expansion phase post mid-2020 downturn.
- Total Assets
- Total assets increased substantially over the period analyzed. From about 12 billion USD at the end of September 2016, assets grew steadily with minor short-term declines, notably between late 2019 and mid-2020, mirroring the decrease seen in net sales. The upward trajectory continued thereafter, showing significant growth especially from mid-2021 onward, reaching over 30 billion USD by the end of 2022. This growth in assets suggests ongoing investments or acquisitions contributing to the company's expansion or asset base enhancement.
- Total Asset Turnover
- The total asset turnover ratio, available from March 2017, shows a declining trend over the analyzed periods. Beginning around 0.78 to 0.93 in 2017-2018, the ratio gradually decreased to approximately 0.55 to 0.56 by late 2022. This decline indicates that the company's efficiency in generating sales from its assets has decreased over time, likely impacted by the rapid asset growth outpacing sales growth in recent years.
- Overall Insights
- The data evidences that the company has expanded its asset base significantly while increasing sales volume over the period. However, the reduction in the total asset turnover ratio suggests a relative decrease in operational efficiency in using assets to generate revenue. The dip in sales and assets observed around mid-2020 aligns with the global economic downturn during the COVID-19 pandemic, followed by a healthy recovery period. Strategic focus might be required to enhance asset utilization to support continued growth effectively.
Equity Turnover
Parker-Hannifin Corp., equity turnover calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||||||
| Net sales | 4,674,811) | 4,232,775) | 4,187,832) | 4,086,387) | 3,824,580) | 3,762,809) | 3,958,869) | 3,746,326) | 3,411,905) | 3,230,540) | 3,160,603) | 3,702,432) | 3,497,974) | 3,334,511) | 3,681,467) | 3,687,518) | 3,472,045) | 3,479,294) | 3,817,477) | 3,749,591) | 3,370,673) | 3,364,651) | 3,496,238) | 3,119,139) | 2,670,804) | 2,743,131) | ||||||||
| Shareholders’ equity | 9,322,380) | 8,762,521) | 8,848,011) | 8,959,866) | 8,755,082) | 8,490,781) | 8,398,307) | 7,392,202) | 7,105,982) | 6,528,964) | 6,113,983) | 6,295,990) | 6,330,175) | 6,096,616) | 5,961,969) | 6,009,978) | 5,815,209) | 6,101,380) | 5,859,866) | 5,870,353) | 5,513,401) | 5,524,940) | 5,261,649) | 4,742,139) | 4,527,709) | 4,647,281) | ||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Equity turnover1 | 1.84 | 1.86 | 1.79 | 1.74 | 1.75 | 1.75 | 1.71 | 1.83 | 1.90 | 2.08 | 2.24 | 2.26 | 2.24 | 2.33 | 2.40 | 2.41 | 2.50 | 2.36 | 2.44 | 2.38 | 2.42 | 2.29 | 2.29 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 3.39 | 3.24 | 3.57 | 3.45 | 3.26 | 2.92 | 2.92 | 2.74 | 2.57 | 2.43 | 2.55 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 1.23 | 1.23 | 1.22 | 1.26 | 1.21 | 1.19 | 1.20 | 1.22 | 1.24 | 1.18 | 1.20 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| GE Aerospace | 2.21 | 2.24 | 2.02 | 2.29 | 2.06 | 1.82 | 1.76 | 1.92 | 2.15 | 2.10 | 2.05 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 2.09 | 2.13 | 2.12 | 1.97 | 1.96 | 1.87 | 1.85 | 1.94 | 1.89 | 1.81 | 1.86 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 7.29 | 6.86 | 7.12 | 5.41 | 5.61 | 6.57 | 6.12 | 6.89 | 10.24 | 10.46 | 10.87 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 0.97 | 0.94 | 0.92 | 0.94 | 0.93 | 0.89 | 0.88 | 0.89 | 0.88 | 0.84 | 0.78 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30).
1 Q2 2023 Calculation
Equity turnover
= (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
÷ Shareholders’ equity
= (4,674,811 + 4,232,775 + 4,187,832 + 4,086,387)
÷ 9,322,380 = 1.84
2 Click competitor name to see calculations.
The net sales exhibited a generally upward trend with some fluctuations over the analyzed periods. From September 2016, the sales started at approximately 2,743 million USD and increased overall to reach nearly 4,675 million USD by December 2022. Notably, there were some periods of decline or stagnation, such as between June 2019 and September 2020, where net sales fell from around 3,707 million USD to approximately 3,161 million USD, likely reflecting external market conditions impacting revenue generation. However, following this dip, net sales rebounded significantly, indicating a recovery trend by the end of 2022.
Shareholders’ equity demonstrated consistent growth throughout the timeframe. Beginning at roughly 4,647 million USD in September 2016, it ascended steadily to about 9,322 million USD by December 2022. This continuous increase suggests ongoing retained earnings accumulation and possibly equity investments, contributing to a stronger capital base over time. Minor short-term declines or slower growth phases occurred but were followed by subsequent recoveries, reflecting overall financial stability and growth in net asset value.
The equity turnover ratio, which measures the efficiency in generating sales from shareholders’ equity, was only available starting March 2017. Initially, it showed a higher efficiency with ratios around 2.3 to 2.5, indicating strong sales generation relative to equity. However, from late 2018 onward, the ratio exhibited a declining trend, reaching as low as approximately 1.7 by early 2021. This downward movement suggests a reduction in sales efficiency relative to the equity base, potentially due to the rapid growth in equity outpacing sales increments or changes in operational leverage. Slight improvements or stabilization are observed towards the end of the period, but the ratio remains below earlier peak levels.
- Net Sales
- Overall growth from 2.74 billion USD to 4.68 billion USD with periods of decline, particularly around 2019-2020.
- Shareholders' Equity
- Consistent increase from 4.65 billion USD to 9.32 billion USD, indicating strengthened financial position.
- Equity Turnover Ratio
- Started high around 2.3-2.5, then declined to about 1.7-1.8, indicating lower sales generation efficiency relative to equity over time.