Applied Materials Inc (AMAT)
Fixed asset turnover
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 27,176,000 | 26,274,000 | 25,590,000 | 22,827,000 | 16,962,000 |
| Property, plant and equipment | US$ in thousands | 3,339,000 | 2,723,000 | 2,307,000 | 1,934,000 | 1,604,000 |
| Fixed asset turnover | 8.14 | 9.65 | 11.09 | 11.80 | 10.57 |
October 27, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $27,176,000K ÷ $3,339,000K
= 8.14
Fixed asset turnover measures how efficiently a company is utilizing its fixed assets to generate revenue. Applied Materials Inc's fixed asset turnover has been fluctuating over the past five years. The ratio was highest in 2021 at 11.80 times, indicating that the company generated $11.80 in revenue for every dollar invested in fixed assets. However, there has been a declining trend in the ratio since then, reaching 8.14 times in 2024. This suggests that the company may be less efficient in utilizing its fixed assets to generate revenue in the most recent year. It is important for Applied Materials Inc to closely monitor and improve its fixed asset turnover to ensure optimal efficiency in its operations.
Peer comparison
Oct 27, 2024