Agilysys Inc (AGYS)

Fixed asset turnover

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	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
Revenue (ttm)	US$ in thousands	238,116	228,927	218,281	207,406	198,852	192,499	182,035	172,185	163,404	152,529	149,739	146,206	137,288	140,489	145,785	152,147	160,729	157,688	151,737	145,217
Property, plant and equipment	US$ in thousands	17,930	18,074	17,477	15,987	14,576	9,696	6,288	5,896	6,345	6,788	7,372	7,746	8,789	9,519	10,108	11,113	12,230	14,849	15,290	15,067
Fixed asset turnover		13.28	12.67	12.49	12.97	13.64	19.85	28.95	29.20	25.75	22.47	20.31	18.88	15.62	14.76	14.42	13.69	13.14	10.62	9.92	9.64

March 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $238,116K ÷ $17,930K
= 13.28

Agilysys Inc's fixed asset turnover has shown fluctuations over the past few quarters. The fixed asset turnover ratio measures the company's ability to generate sales revenue from its investments in fixed assets such as property, plant, and equipment.

From the data provided, we observe that the fixed asset turnover ratio has generally been high, ranging from 9.64 to 29.20 over the past several quarters. A higher fixed asset turnover ratio indicates that the company is efficiently utilizing its fixed assets to generate sales.

The trend in Agilysys Inc's fixed asset turnover ratio shows periods of both increase and decrease. The ratio peaked at 29.20 in the second quarter of 2022, suggesting a very efficient use of fixed assets to generate revenue. However, the ratio experienced a significant decline in subsequent quarters, dropping to 9.64 in the third quarter of 2019 before gradually recovering.

While the fluctuations in the fixed asset turnover ratio can indicate changes in the company's operational efficiency and asset utilization, it is essential to consider other factors and metrics when evaluating Agilysys Inc's overall financial performance. Further analysis of the company's profitability, liquidity, and solvency ratios would provide a more comprehensive understanding of its financial health and performance.