Avnet Inc (AVT)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 23,757,100 | 26,536,900 | 24,310,700 | 19,534,700 | 17,634,300 |
| Property, plant and equipment | US$ in thousands | 568,169 | 441,557 | 315,200 | 368,500 | 404,600 |
| Fixed asset turnover | 41.81 | 60.10 | 77.13 | 53.01 | 43.58 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $23,757,100K ÷ $568,169K
= 41.81
Fixed asset turnover is a key financial ratio used to evaluate a company's efficiency in generating revenue from its fixed assets. Avnet Inc's fixed asset turnover has shown fluctuations over the past five years.
In 2024, Avnet Inc's fixed asset turnover decreased to 41.81 from 60.10 in 2023. This decline may indicate that the company's fixed assets were less productive in generating sales revenue compared to the previous year. However, the ratio was still higher than in 2020 and 2021, suggesting an improvement in asset utilization over the earlier years.
The peak in fixed asset turnover was observed in 2022 at 77.13, indicating that Avnet Inc was able to generate significant revenue from its fixed assets during that year. The ratio then decreased in 2023 and continued to decline in 2024.
Overall, fluctuations in fixed asset turnover may suggest changes in Avnet Inc's operational efficiency and asset utilization over the years. Further analysis of the company's fixed asset management and sales performance may be warranted to understand the factors contributing to these variations.
Peer comparison
Jun 30, 2024