Digi International Inc (DGII)

Fixed asset turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	444,849	388,225	308,632	279,271	254,203
Property, plant and equipment	US$ in thousands	29,108	27,594	12,132	11,507	13,857
Fixed asset turnover		15.28	14.07	25.44	24.27	18.34

September 30, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $444,849K ÷ $29,108K
= 15.28

The fixed asset turnover ratio measures a company's ability to generate sales from its investment in fixed assets. For Digi International, Inc., the ratio has shown variability over the past five years. In Sep 30, 2023, the fixed asset turnover was 15.28, which indicates that the company generated $15.28 in sales for every dollar invested in fixed assets. This represents an improvement from the previous year, where the ratio was 14.07.

The significant increase in the fixed asset turnover in Sep 30, 2021, and Sep 30, 2020, to 25.44 and 24.27, respectively, suggests that the company's efficiency in utilizing its fixed assets to generate sales improved during those years. However, in Sep 30, 2019, the ratio was 18.34, showing a decrease from the previous year.

Overall, the trend in the fixed asset turnover ratio indicates that Digi International, Inc. has been successful in increasing its sales relative to its investment in fixed assets, demonstrating improved efficiency in utilizing its fixed assets to generate revenue.