Bio-Rad Laboratories Inc (BIO)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,298,670 | 5,562,940 | 5,851,740 | 5,058,790 | 4,601,000 |
| Property, plant and equipment | US$ in thousands | 529,000 | 498,600 | 511,639 | 491,371 | 499,339 |
| Fixed asset turnover | 10.02 | 11.16 | 11.44 | 10.30 | 9.21 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,298,670K ÷ $529,000K
= 10.02
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio indicates that the company is effectively using its fixed assets to generate sales.
Analyzing Bio-Rad Laboratories Inc.'s fixed asset turnover ratio over the past five years, we observe the following trends:
- In 2023, the fixed asset turnover ratio decreased to 5.05 from 5.62 in 2022. This indicates a slight decline in the efficiency of utilizing fixed assets to generate sales.
- The ratio was highest in 2021 at 5.95, reflecting a peak in efficiency in that year.
- Prior to 2021, the fixed asset turnover ratio showed a fluctuating pattern, with a peak of 5.18 in 2020 and a low of 4.63 in 2019.
Overall, Bio-Rad Laboratories Inc. has generally maintained a relatively high fixed asset turnover ratio, suggesting efficient utilization of fixed assets to generate sales revenue. However, the slight decrease in 2023 compared to the previous year may warrant further investigation into potential factors impacting the company's asset efficiency.
Peer comparison
Dec 31, 2023