Digi International Inc (DGII)

Fixed asset turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	424,046	444,849	388,225	308,632	279,271
Property, plant and equipment	US$ in thousands	34,915	29,108	27,594	12,132	11,507
Fixed asset turnover		12.15	15.28	14.07	25.44	24.27

September 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $424,046K ÷ $34,915K
= 12.15

The fixed asset turnover ratio of Digi International Inc has shown fluctuations over the past five years. The ratio measures how efficiently the company generates sales revenue from its investment in fixed assets.

In 2020 and 2021, Digi International Inc had very high fixed asset turnover ratios of 24.27 and 25.44 respectively, indicating that the company was effectively utilizing its fixed assets to generate sales. However, in 2022, there was a slight dip in the ratio to 14.07, suggesting a decrease in the efficiency of generating sales from fixed assets.

Further, in 2023 and 2024, the fixed asset turnover ratios continued to decline to 15.28 and 12.15 respectively. This downward trend could indicate potential issues with the utilization of fixed assets or the company's sales generating capacity. It is important for Digi International Inc to monitor and improve its fixed asset turnover ratio to ensure efficient utilization of assets and maximize revenue generation.