Cirrus Logic Inc (CRUS)

Fixed asset turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	1,788,060	1,896,530	1,781,390	1,369,220	1,280,980
Property, plant and equipment	US$ in thousands	170,175	162,972	157,077	154,942	158,244
Fixed asset turnover		10.51	11.64	11.34	8.84	8.09

March 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,788,060K ÷ $170,175K
= 10.51

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales revenue. A higher fixed asset turnover ratio indicates better efficiency in generating sales from investments in fixed assets.

From the data provided:
- Cirrus Logic Inc's fixed asset turnover has shown fluctuations over the past five years, ranging from 8.09 to 11.64.
- The company's fixed asset turnover was highest in the fiscal year ending March 31, 2023, at 11.64, indicating that it generated $11.64 in sales revenue for every $1 invested in fixed assets during that period.
- The lowest fixed asset turnover was recorded in the fiscal year ending March 31, 2020, at 8.09, suggesting that the company generated $8.09 in sales revenue for every $1 invested in fixed assets in that year.
- Overall, the trend in the fixed asset turnover ratio indicates that Cirrus Logic Inc has been effective in leveraging its fixed assets to generate sales revenue efficiently, with fluctuations seen over the years.

These variations in the fixed asset turnover ratio could be attributed to changes in the company's investment in fixed assets, sales performance, or a combination of both. Evaluating this ratio in conjunction with other financial metrics can provide a more comprehensive understanding of the company's operational efficiency and asset utilization.