Cytek Biosciences Inc (CTKB)

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
Revenue (ttm)	US$ in thousands	193,014	183,117	175,594	166,060	164,036	155,086	148,985	139,234
Property, plant and equipment	US$ in thousands	18,405	17,415	15,588	15,549	13,682	7,844	7,340	6,504	5,851	4,982	3,895
Fixed asset turnover		10.49	10.51	11.26	10.68	11.99	19.77	20.30	21.41

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $193,014K ÷ $18,405K
= 10.49

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

Analyzing the trend of Cytek Biosciences Inc's fixed asset turnover ratio over the past few quarters reveals fluctuation in the efficiency of utilizing its fixed assets. The company experienced a significant decrease in fixed asset turnover from 21.41 in Q1 2022 to 10.49 in Q4 2023. This may suggest that Cytek Biosciences Inc's fixed assets are not generating as much revenue relative to the investment in those assets, which could potentially be a cause for concern.

In general, a declining fixed asset turnover ratio could imply inefficiencies in managing and utilizing fixed assets, leading to lower revenue generation. It would be beneficial for the company to investigate the reasons behind the drop in the ratio and take appropriate actions to improve asset utilization efficiency in order to enhance overall profitability and operational performance.