Cavco Industries Inc (CVCO)
Fixed asset turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,794,790 | 2,142,710 | 1,627,160 | 1,108,050 | 1,061,770 |
| Property, plant and equipment | US$ in thousands | 224,199 | 228,278 | 164,016 | 96,794 | 77,190 |
| Fixed asset turnover | 8.01 | 9.39 | 9.92 | 11.45 | 13.76 |
March 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,794,790K ÷ $224,199K
= 8.01
The fixed asset turnover ratio for Cavco Industries Inc has been on a declining trend over the past five years. The ratio decreased from 13.76 in 2020 to 8.01 in 2024. This suggests that the company's efficiency in generating sales from its fixed assets has decreased. A lower fixed asset turnover ratio may indicate that either the company is not effectively utilizing its fixed assets to generate revenue, or its sales have not grown at a pace that corresponds with the increase in fixed assets. Further investigation into the company's operational efficiency and investment in fixed assets may be warranted to understand the reasons behind this trend.