Coherent Inc (COHR)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,412,030 | 4,867,480 | 3,194,080 | 3,014,630 | 2,274,090 |
| Property, plant and equipment | US$ in thousands | 1,817,260 | 1,782,040 | 1,363,200 | 1,242,910 | 1,214,770 |
| Fixed asset turnover | 2.43 | 2.73 | 2.34 | 2.43 | 1.87 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,412,030K ÷ $1,817,260K
= 2.43
The fixed asset turnover ratio for Coherent Inc has shown some variability over the past five years. The ratio measures how effectively the company generates sales from its investment in fixed assets.
In 2024, the fixed asset turnover ratio decreased to 2.43 from 2.73 in 2023. This suggests that Coherent Inc generated $2.43 in sales for every dollar invested in fixed assets in 2024. The decrease in the ratio compared to the previous year indicates a slight decline in the efficiency of utilizing fixed assets to generate revenue.
Comparing the current ratio to previous years, it is slightly higher than the 2.34 recorded in 2022 and significantly higher than the 1.87 recorded in 2020. In 2021, the ratio was the same at 2.43, indicating a similar level of efficiency in utilizing fixed assets to generate sales.
Overall, the fluctuation in the fixed asset turnover ratio of Coherent Inc suggests some variability in the company's ability to generate sales from its fixed assets. It is essential for the company to closely monitor this ratio to ensure optimal utilization of its fixed assets and maximize efficiency in generating revenue.
Peer comparison
Jun 30, 2024