Name: Fixed Asset Turnover

Definition: Fixed asset turnover shows how well the company’s long-term physical assets — factories, equipment, property — are being used to generate sales. A high ratio means the company’s facilities are productive and efficient. A low ratio might signal underused assets or over-investment in equipment that isn’t driving enough sales.

Interpretation:
• In '2021', CTVA's fixed asset turnover was 3.62, illustrating how efficiently fixed assets are generating revenue. Industry average for Farming/Seeds/Milling in '2021' stood at 2.61.
• In '2022', CTVA's fixed asset turnover was 4.07, illustrating how efficiently fixed assets are generating revenue. The increase since '2021' reflects strengthening financial performance. Industry average for Farming/Seeds/Milling in '2022' stood at 2.71. Industry average increased by 0.11 compared to previous year.
• In '2023', CTVA's fixed asset turnover was 4.03, illustrating how efficiently fixed assets are generating revenue. The decline from '2022' may indicate some operational or financial challenges. Industry average for Farming/Seeds/Milling in '2023' stood at 2.77. Industry average increased by 0.05 compared to previous year.
• In '2024', CTVA's fixed asset turnover was 4.03, illustrating how efficiently fixed assets are generating revenue. The decline from '2023' may indicate some operational or financial challenges. Industry average for Farming/Seeds/Milling in '2024' stood at 3.23. Industry average increased by 0.47 compared to previous year.
Overall, CTVA's fixed asset turnover has steadily improved over the past 4 years.

Formula: Fixed Asset Turnover = Net Sales / Net Fixed Assets

Good Range: Ranges from 1 to 5 depending on asset intensity.