Digi International Inc (DGII)

Fixed asset turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Revenue (ttm)	US$ in thousands	424,046	431,157	438,190	441,632	444,849	438,424	429,705	413,274	388,225	361,593	337,155	319,743	308,632	302,695	293,954	290,100	279,271	271,062	261,890	254,207
Property, plant and equipment	US$ in thousands	34,915	32,714	30,076	28,644	29,108	29,590	29,812	28,374	27,594	26,380	27,078	27,058	12,132	12,559	13,096	13,442	11,507	12,284	12,817	13,206
Fixed asset turnover		12.15	13.18	14.57	15.42	15.28	14.82	14.41	14.57	14.07	13.71	12.45	11.82	25.44	24.10	22.45	21.58	24.27	22.07	20.43	19.25

September 30, 2024 calculation

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

The fixed asset turnover ratio measures how effectively a company generates revenue from its investment in fixed assets such as property, plant, and equipment. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets efficiently to generate sales.

Based on the data provided, Digi International Inc's fixed asset turnover has shown a generally increasing trend over the past few quarters. The ratio has been consistently above 10, indicating that the company is able to generate a significant amount of revenue relative to its investment in fixed assets.

In the most recent quarter, the fixed asset turnover ratio was 12.15, which means that for every dollar invested in fixed assets, Digi International Inc generated $12.15 in sales. This indicates a strong efficiency in utilizing its fixed assets to drive revenue.

The consecutive increase in the fixed asset turnover ratio over the quarters suggests that Digi International Inc has been able to improve its operational efficiency and effectively manage its fixed assets to drive revenue growth. This trend is positive as it indicates that the company is making efficient use of its capital investments in fixed assets.