Apple Inc (AAPL)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 379,352,000 | 391,397,000 | 363,172,000 | 271,642,000 | 256,598,000 |
| Property, plant and equipment | US$ in thousands | 43,715,000 | 42,117,000 | 39,440,000 | 36,766,000 | 37,378,000 |
| Fixed asset turnover | 8.68 | 9.29 | 9.21 | 7.39 | 6.86 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $379,352,000K ÷ $43,715,000K
= 8.68
The fixed asset turnover ratio for Apple Inc has shown a fluctuating trend over the past five years, as evidenced by the data provided. The ratio indicates how efficiently the company is utilizing its fixed assets to generate sales revenue.
In 2019, the fixed asset turnover ratio was 6.96, indicating that for every dollar invested in fixed assets, Apple generated $6.96 in sales. Over the next two years, there was a significant improvement in the ratio, reaching 9.28 in 2021, showcasing a substantial increase in the efficiency of the company's fixed asset utilization.
However, in 2022, there was a slight decline in the ratio to 9.36, followed by a further decrease to 8.77 in 2023. This downward trend suggests a potential reduction in the efficiency of utilizing fixed assets to generate sales revenue.
A declining trend in fixed asset turnover could be attributed to various factors, such as increasing investment in fixed assets with a slower growth in sales, underutilization of fixed assets, or changes in the business model that affect the relationship between fixed assets and sales.
Further analysis of the underlying reasons for the fluctuation in the fixed asset turnover ratio would provide valuable insights into Apple Inc's operational efficiency and asset management strategies.
Peer comparison
Sep 30, 2023