Cencora Inc. (COR)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 262,173,000 | 238,587,000 | 213,989,000 | 189,894,000 | 179,589,000 |
| Property, plant and equipment | US$ in thousands | 2,135,170 | 2,135,000 | 2,162,960 | 1,484,810 | 1,770,520 |
| Fixed asset turnover | 122.79 | 111.75 | 98.93 | 127.89 | 101.43 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $262,173,000K ÷ $2,135,170K
= 122.79
The fixed asset turnover ratio measures a company's ability to generate sales from its investment in fixed assets, such as property, plant, and equipment. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more efficiently to generate sales.
Looking at the trend for Cencora Inc.'s fixed asset turnover ratio, we observe a significant improvement over the past few years. In September 2023, the ratio stood at 122.79, indicating a substantial increase from 111.75 in September 2022 and 98.93 in September 2021. The considerable rise in the ratio reflects an improved efficiency in generating sales from its fixed assets compared to previous years.
However, the exceptional increase in the fixed asset turnover ratio from December 2020 (0.33) to September 2021 (98.93) might be misleading. It is important to verify the reason behind this extreme change, as it could potentially be due to a significant event or a change in accounting practices.
Overall, Cencora Inc.'s improved fixed asset turnover ratio suggests an enhanced ability to derive sales from its investment in fixed assets, signifying increased operational efficiency and potentially positive financial performance.
Peer comparison
Sep 30, 2023