Agilent Technologies Inc (A)
Fixed asset turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,784,000 | 6,774,000 | 6,236,000 | 5,271,000 | 5,073,000 |
| Property, plant and equipment | US$ in thousands | 1,270,000 | 1,100,000 | 945,000 | 845,000 | 850,000 |
| Fixed asset turnover | 5.34 | 6.16 | 6.60 | 6.24 | 5.97 |
October 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,784,000K ÷ $1,270,000K
= 5.34
The fixed asset turnover is a financial ratio that measures how efficiently a company is generating sales revenue from its investment in fixed assets such as property, plant, and equipment. Agilent Technologies Inc.'s fixed asset turnover over the past five years is as follows:
- Oct 31, 2023: 5.38
- Oct 31, 2022: 6.23
- Oct 31, 2021: 6.69
- Oct 31, 2020: 6.32
- Oct 31, 2019: 6.07
A higher fixed asset turnover ratio indicates that the company is generating more sales for each dollar invested in fixed assets, which is generally considered favorable.
Agilent Technologies Inc. has exhibited a generally consistent performance in terms of fixed asset turnover ratio over the past five years, with ratios ranging from 5.38 to 6.69. This indicates that the company has remained efficient in utilizing its fixed assets to generate sales revenue. However, the slight fluctuations in the ratio may be worth investigating further to identify any underlying factors contributing to the changes.
It's important to note that while a high fixed asset turnover ratio generally reflects efficient asset utilization, excessively high ratios may also indicate aggressive sales practices or potential underinvestment in fixed assets, which could impact the company's long-term competitiveness and growth prospects. Therefore, it would be beneficial to compare Agilent Technologies Inc.'s fixed asset turnover with industry benchmarks and its own historical performance to gain further insights into its asset management efficiency.
Peer comparison
Oct 31, 2023