Deluxe Corporation (DLX)

Fixed asset turnover

Dec 31, 2024 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
Revenue (ttm) US$ in thousands 2,121,715 2,138,615 2,147,971 2,181,855 2,192,265 2,218,865 2,236,103 2,227,403 2,238,053 2,244,653 2,221,756 2,136,956 2,022,205 1,906,105 1,813,464 1,745,669 1,790,805 1,858,405 1,912,498 1,996,093
Property, plant and equipment US$ in thousands — — — — — 179,905 126,967 125,459 172,026 122,478 127,786 124,270 190,500 129,712 158,716 87,836 88,680 -284,556 77,857 94,291
Fixed asset turnover — — — — — 12.33 17.61 17.75 13.01 18.33 17.39 17.20 10.62 14.69 11.43 19.87 20.19 — 24.56 21.17

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,121,715K ÷ $—K
= —

The fixed asset turnover ratio is a financial metric that measures a company's ability to generate sales from its investment in fixed assets. A higher fixed asset turnover ratio indicates that a company is efficiently utilizing its fixed assets to generate revenue.

Analyzing Deluxe Corporation's fixed asset turnover based on the provided data:

- The fixed asset turnover ratio for Deluxe Corporation ranged from 10.62 to 24.56 over the reported periods.
- The ratio peaked at 24.56 on June 30, 2020, indicating that Deluxe Corporation was very efficient in generating sales from its fixed assets during that period.
- There were fluctuations in the fixed asset turnover ratio over the years, with some periods showing significant decreases in efficiency, such as on December 31, 2021 (10.62) and September 30, 2023 (12.33).
- The ratio improved in the most recent periods, reaching 17.61 on June 30, 2023, and 17.75 on March 31, 2023, suggesting an enhancement in the company's ability to generate sales from its fixed assets.

Overall, Deluxe Corporation's fixed asset turnover has shown variability over the reported periods, with both peaks and troughs. It is important for the company to maintain a balance between efficiently utilizing its fixed assets and generating sales to ensure sustainable growth and profitability.