Amphenol Corporation (APH)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 15,222,600 | 14,232,300 | 13,392,700 | 12,836,900 | 12,554,600 | 12,466,300 | 12,562,300 | 12,645,200 | 12,623,100 | 12,410,700 | 11,934,000 | 11,451,100 | 10,876,300 | 10,275,500 | 9,780,400 | 9,114,000 | 8,598,900 | 8,323,900 | 8,101,100 | 8,128,900 |
| Property, plant and equipment | US$ in thousands | 1,711,800 | 1,670,900 | 1,534,000 | 1,311,600 | 1,314,700 | 1,246,600 | 1,258,900 | 1,243,500 | 1,204,300 | 1,166,900 | 1,155,100 | 1,175,000 | 1,175,300 | 1,175,400 | 1,169,300 | 1,076,200 | 1,054,600 | 1,036,900 | 1,001,700 | 982,400 |
| Fixed asset turnover | 8.89 | 8.52 | 8.73 | 9.79 | 9.55 | 10.00 | 9.98 | 10.17 | 10.48 | 10.64 | 10.33 | 9.75 | 9.25 | 8.74 | 8.36 | 8.47 | 8.15 | 8.03 | 8.09 | 8.27 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,222,600K ÷ $1,711,800K
= 8.89
The fixed asset turnover ratio measures how efficiently a company is generating sales revenue from its investment in fixed assets. For Amphenol Corporation, the fixed asset turnover has shown a generally increasing trend over the years, starting at 8.27 in March 2020 and peaking at 10.64 in September 2022 before gradually decreasing to 8.89 by December 2024.
A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales, which is generally a positive sign as it signifies operational efficiency and a strong return on investment in fixed assets. However, the slight decline towards the end of the period may suggest potential changes in the company's asset base or sales performance that could be worth investigating further.
Overall, the trend in Amphenol Corporation's fixed asset turnover indicates an efficient utilization of fixed assets to drive sales, but monitoring future developments in this ratio will be important to assess the company's ongoing operational efficiency and asset management.
See also:
Amphenol Corporation Net Fixed Asset Turnover (Quarterly Data)