Boston Scientific Corp (BSX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,975,000 | 12,190,000 | 11,625,000 | 9,552,000 | 10,348,000 |
| Property, plant and equipment | US$ in thousands | 2,859,000 | 2,446,000 | 2,252,000 | 2,084,000 | 2,079,000 |
| Fixed asset turnover | 4.89 | 4.98 | 5.16 | 4.58 | 4.98 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $13,975,000K ÷ $2,859,000K
= 4.89
Fixed asset turnover measures how efficiently a company utilizes its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is effectively using its fixed assets to generate sales.
Looking at Boston Scientific Corp.'s fixed asset turnover over the past five years, we can see a fluctuating trend. In 2023, the fixed asset turnover ratio decreased to 4.98 from 5.18 in 2022, indicating a slight decline in the efficiency of fixed asset utilization. However, it is still relatively high compared to previous years.
The company experienced a peak in fixed asset turnover in 2021 at 5.28, which suggests an efficient utilization of fixed assets to generate sales during that year. Prior to that, in 2020 and 2019, the fixed asset turnover ratios were 4.76 and 5.16, respectively, showing fluctuation but generally remaining at a level indicating efficient utilization of fixed assets.
Overall, Boston Scientific Corp. has shown varying levels of efficiency in utilizing its fixed assets over the past five years, with some fluctuations in the ratio. Further analysis of industry benchmarks and trends may help provide more context to evaluate the company's performance in this aspect.
Peer comparison
Dec 31, 2023