Amphenol Corporation (APH)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,554,700 | 12,623,000 | 10,876,300 | 8,598,900 | 8,225,400 |
| Property, plant and equipment | US$ in thousands | 1,314,700 | 1,204,300 | 1,175,300 | 1,054,600 | 999,000 |
| Fixed asset turnover | 9.55 | 10.48 | 9.25 | 8.15 | 8.23 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $12,554,700K ÷ $1,314,700K
= 9.55
The fixed asset turnover ratio of Amphenol Corp. has been relatively stable over the past five years, ranging from 8.15 to 10.48. This indicates that, on average, the company generated $9.13 in revenue for every dollar invested in fixed assets during this period.
A higher fixed asset turnover ratio generally indicates that the company is efficiently utilizing its fixed assets to generate sales. For Amphenol Corp., the ratios above 9 suggest that the company has been effective in utilizing its fixed assets to generate revenue over the years.
However, a decreasing trend in the fixed asset turnover ratio may also indicate that the company is facing challenges in efficiently utilizing its fixed assets to generate sales. In this case, it is important to further investigate the reasons behind this trend and assess the company's asset management strategies.