PC Connection Inc (CNXN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,850,070 | 3,124,980 | 2,892,630 | 2,590,160 | 2,819,820 |
| Property, plant and equipment | US$ in thousands | 56,658 | 59,171 | 61,011 | 61,537 | 64,226 |
| Fixed asset turnover | 50.30 | 52.81 | 47.41 | 42.09 | 43.90 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,850,070K ÷ $56,658K
= 50.30
Fixed asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its investments in fixed assets. A higher fixed asset turnover indicates that the company is more effective in utilizing its fixed assets to generate sales.
Looking at the trend of PC Connection Inc's fixed asset turnover from 2019 to 2023, we observe fluctuations in the ratio. In 2023, the fixed asset turnover ratio decreased to 50.30 from 52.81 in 2022. This indicates that, on average, each dollar of fixed assets generated $50.30 in sales during the year.
Despite the slight decline in 2023, PC Connection Inc's fixed asset turnover ratios have generally been strong over the past five years. The company has shown consistent ability to efficiently generate sales from its investment in fixed assets.
It is important to note that while a high fixed asset turnover ratio generally indicates operational efficiency, it is essential to consider the industry norms and compare the company's ratio with its peers for a more meaningful analysis. Additionally, further investigation into the reasons behind the fluctuations in the ratio could provide valuable insights into the company's operations and financial performance.
Peer comparison
Dec 31, 2023