Amphastar P (AMPH)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	731,967	644,395	498,987	437,768	349,846
Property, plant and equipment	US$ in thousands	297,345	282,746	238,266	244,244	260,055
Fixed asset turnover		2.46	2.28	2.09	1.79	1.35

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $731,967K ÷ $297,345K
= 2.46

Fixed asset turnover is a financial ratio that measures how efficiently a company utilizes its fixed assets to generate sales revenue. A higher fixed asset turnover ratio indicates better productivity and efficiency in utilizing fixed assets.

Based on the data provided for Amphastar P, the fixed asset turnover has been showing a positive trend over the years. In December 31, 2020, the fixed asset turnover was 1.35. This ratio increased to 1.79 by December 31, 2021, demonstrating an improvement in the company's efficiency in generating sales from its fixed assets.

The trend continued to show a steady increase in subsequent years, reaching 2.09 by December 31, 2022, 2.28 by December 31, 2023, and further improving to 2.46 by December 31, 2024. This indicates that Amphastar P has been effectively utilizing its fixed assets to generate sales revenue, showing enhanced efficiency and productivity in its operations.

Overall, the increasing trend in the fixed asset turnover ratio reflects positively on Amphastar P's operational efficiency and effectiveness in utilizing its fixed assets to drive revenue growth. It suggests that the company is efficiently managing and leveraging its investments in fixed assets to generate a higher volume of sales over the years.