Catalent Inc (CTLT)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,381,000 | 4,263,000 | 4,802,000 | 3,998,000 | 3,094,000 |
| Property, plant and equipment | US$ in thousands | 3,643,000 | 3,682,000 | 3,127,000 | 2,524,000 | 1,901,000 |
| Fixed asset turnover | 1.20 | 1.16 | 1.54 | 1.58 | 1.63 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,381,000K ÷ $3,643,000K
= 1.20
Fixed asset turnover measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover indicates better utilization of fixed assets to generate sales.
Analyzing Catalent Inc's fixed asset turnover over the past five years, we observe a decreasing trend from 1.63 in 2020 to 1.20 in 2024. This decline suggests a decrease in the efficiency of Catalent Inc in generating revenue from its fixed assets over the years.
The company's fixed asset turnover was relatively high in 2020 at 1.63, indicating a more efficient utilization of fixed assets to generate sales. However, this efficiency has decreased over the years, as seen in the subsequent decrease in the fixed asset turnover ratio to 1.20 in 2024.
The declining trend in fixed asset turnover could indicate that Catalent Inc may be facing challenges in optimizing the use of its fixed assets to drive revenue growth. It may be beneficial for the company to assess its asset management strategies and explore opportunities to improve the efficiency of its fixed asset utilization in order to enhance overall profitability and performance.
Peer comparison
Jun 30, 2024