Cognex Corporation (CGNX)

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	824,931	871,996	891,741	923,419	1,004,258	1,006,206	1,082,805	1,078,739	1,034,795	1,014,415	983,583	884,497	810,787	756,941	685,541	715,295	724,470	747,987	1,030,020	1,042,097
Property, plant and equipment	US$ in thousands	105,849	82,965	81,638	81,274	79,714	79,425	79,468	77,870	77,546	76,882	76,972	77,081	79,173	81,225	83,936	86,702	89,443	88,429	89,342	91,273
Fixed asset turnover		7.79	10.51	10.92	11.36	12.60	12.67	13.63	13.85	13.34	13.19	12.78	11.47	10.24	9.32	8.17	8.25	8.10	8.46	11.53	11.42

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $824,931K ÷ $105,849K
= 7.79

Fixed asset turnover measures how effectively a company is utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio indicates that a company is generating more revenue per dollar of fixed assets.

Analyzing the data provided for Cognex Corp., we observe that the fixed asset turnover ratio has been consistently high over the past 8 quarters, ranging from 7.91 to 13.88. This indicates that the company is efficiently utilizing its fixed assets to generate sales revenue.

The declining trend in fixed asset turnover from Q4 2022 to Q1 2023 (12.62 to 11.38) could be a point of interest. However, the ratio remains relatively high, suggesting that Cognex Corp. is maintaining effective asset utilization.

Overall, the consistently high fixed asset turnover ratio for Cognex Corp. reflects strong operational efficiency and effective management of its fixed assets to drive sales. Investors and stakeholders may view this positively as it indicates the company's ability to generate revenue efficiently with its existing asset base.