Benchmark Electronics Inc (BHE)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,656,100	2,838,980	2,886,330	2,255,320	2,053,130
Property, plant and equipment	US$ in thousands	225,097	227,698	211,478	186,666	185,272
Fixed asset turnover		11.80	12.47	13.65	12.08	11.08

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,656,100K ÷ $225,097K
= 11.80

Fixed asset turnover is a financial ratio that measures a company's efficiency in generating revenue from its investments in fixed assets. For Benchmark Electronics Inc, the trend for fixed asset turnover from December 31, 2020, to December 31, 2024, shows an overall improvement. The ratio increased from 11.08 in 2020 to 13.65 in 2022, indicating that the company was able to generate $13.65 of revenue for every dollar invested in fixed assets in 2022.

Although there was a slight dip in 2023 to 12.47, the ratio still remained relatively high, demonstrating the company's strong ability to utilize its fixed assets efficiently. The ratio then decreased to 11.80 in 2024, which may suggest a potential decrease in revenue generated from fixed assets compared to the previous year.

Overall, Benchmark Electronics Inc has effectively utilized its fixed assets to generate revenue, with fluctuations over the years possibly due to changes in the business environment or investment decisions. Further analysis would be required to understand the underlying factors influencing the fluctuations in the fixed asset turnover ratio.