Bio-Rad Laboratories Inc (BIO)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	2,637,846	2,686,946	2,731,337	2,741,910	2,774,598	2,777,098	2,856,467	2,894,713	2,922,702	2,979,702	2,876,119	2,701,076	2,540,271	2,374,971	2,288,622	2,311,881	2,292,289	2,284,689	2,267,881	2,271,474
Property, plant and equipment	US$ in thousands	529,000	511,389	514,013	506,454	498,600	461,112	471,321	485,743	511,639	476,648	482,001	482,712	491,371	480,949	481,430	486,174	499,339	495,876	499,180	502,952
Fixed asset turnover		4.99	5.25	5.31	5.41	5.56	6.02	6.06	5.96	5.71	6.25	5.97	5.60	5.17	4.94	4.75	4.76	4.59	4.61	4.54	4.52

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,637,846K ÷ $529,000K
= 4.99

The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate sales. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate revenue.

Analyzing Bio-Rad Laboratories Inc.'s fixed asset turnover over the past eight quarters, we observe a decreasing trend from Q1 2022 to Q4 2023. The ratio has declined from 6.09 in Q2 2022 to 5.05 in Q4 2023.

Despite the decreasing trend, the company's fixed asset turnover remains relatively high, with values consistently above 5. This suggests that Bio-Rad Laboratories Inc. is efficiently utilizing its fixed assets to generate sales, although there has been a slight decrease in efficiency over time.

Further investigation into the underlying reasons for the decreasing trend in fixed asset turnover could provide insights into the company's asset management strategy and potential areas for improvement in asset utilization efficiency.