Boston Scientific Corp (BSX)

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	13,974,000	10,508,000	10,348,000	9,999,000	9,228,000	12,104,000	11,689,000	11,502,000	11,625,000	11,168,000	10,855,000	9,774,000	9,553,000	9,751,000	9,790,000	10,420,000	10,349,000	10,035,000	9,758,000	9,649,000
Property, plant and equipment	US$ in thousands	2,859,000	2,635,000	2,534,000	2,478,000	2,446,000	2,273,000	2,246,000	2,265,000	2,252,000	2,109,000	2,082,000	2,053,000	2,084,000	2,064,000	2,079,000	2,098,000	2,079,000	1,942,000	1,820,000	1,782,000
Fixed asset turnover		4.89	3.99	4.08	4.04	3.77	5.33	5.20	5.08	5.16	5.30	5.21	4.76	4.58	4.72	4.71	4.97	4.98	5.17	5.36	5.41

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $13,974,000K ÷ $2,859,000K
= 4.89

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

In the case of Boston Scientific Corp., the fixed asset turnover ratio has been consistently high over the past eight quarters, ranging from 4.98 to 5.53. This indicates that the company is effectively using its fixed assets to generate revenue. The declining trend seen in the most recent quarters from Q3 2022 to Q4 2023 could suggest either an increase in fixed assets or a decrease in revenue generated from those assets.

Overall, Boston Scientific Corp.'s fixed asset turnover ratio suggests that the company is efficiently managing its fixed assets to generate sales, with the recent decline in the ratio potentially highlighting the need for further analysis to understand the underlying factors impacting this metric.