Benchmark Electronics Inc (BHE)

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 2,656,105 2,690,572 2,752,520 2,819,856 2,838,976 2,898,266 2,950,146 2,944,943 2,886,331 2,768,741 2,569,048 2,385,681 2,255,319 2,143,515 2,097,584 2,043,888 2,053,131 2,040,325 2,069,603 2,180,239
Property, plant and equipment US$ in thousands 225,097 224,164 225,888 223,992 227,698 231,661 222,245 221,016 211,478 204,154 198,497 190,526 186,666 188,858 188,318 183,294 185,272 190,610 198,001 201,580
Fixed asset turnover 11.80 12.00 12.19 12.59 12.47 12.51 13.27 13.32 13.65 13.56 12.94 12.52 12.08 11.35 11.14 11.15 11.08 10.70 10.45 10.82

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,656,105K ÷ $225,097K
= 11.80

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Benchmark Electronics Inc, the trend in the fixed asset turnover ratio has been generally increasing over the period from March 31, 2020, to December 31, 2024.

The fixed asset turnover ratio for Benchmark Electronics Inc started at 10.82 on March 31, 2020, and steadily increased to a peak of 13.65 on December 31, 2022. This indicates that the company was generating $13.65 in sales revenue for every dollar invested in fixed assets at that point.

However, the ratio started to decline slightly after December 31, 2022, with some fluctuations observed in the subsequent periods. The ratio decreased to 11.80 on December 31, 2024. While the decline may suggest a potential inefficiency in utilizing fixed assets to generate revenue, it is important to consider other factors such as changes in the company's business strategy, capital investments, or operational challenges that could impact the ratio.

Overall, the increasing trend in Benchmark Electronics Inc's fixed asset turnover ratio from 2020 to 2022 indicates improved efficiency in the utilization of fixed assets. Further monitoring of the ratio and its underlying drivers will be essential to assess the company's operational performance and asset productivity in the future.