DXC Technology Co (DXC)
Fixed asset turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,667,000 | 14,430,000 | 16,265,000 | 17,729,000 | 19,577,000 |
| Property, plant and equipment | US$ in thousands | 1,407,000 | 1,555,000 | 1,810,000 | 2,112,000 | 2,327,000 |
| Fixed asset turnover | 9.71 | 9.28 | 8.99 | 8.39 | 8.41 |
March 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $13,667,000K ÷ $1,407,000K
= 9.71
The fixed asset turnover ratio measures how effectively a company utilizes its fixed assets to generate revenue. A higher ratio indicates that the company is generating more revenue per dollar invested in fixed assets.
DXC Technology Co's fixed asset turnover has shown a generally increasing trend over the past five years. In the most recent fiscal year ending on March 31, 2024, the ratio was 9.71, which signifies that the company generated approximately $9.71 in revenue for every dollar invested in fixed assets. This is an improvement compared to the ratio of 9.28 in the previous year and indicates a better utilization of fixed assets in generating revenue.
Overall, DXC Technology Co's fixed asset turnover has remained consistently above 8, indicating efficient management of fixed assets to drive revenue growth. The increasing trend in the ratio suggests that the company has been successful in optimizing its asset base to support revenue generation over the years. However, it is essential to continue monitoring this ratio to ensure ongoing efficiency in asset utilization and revenue generation.
Peer comparison
Mar 31, 2024