Embecta Corp (EMBC)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 1,118,700 | 1,112,000 | 1,126,300 |
| Property, plant and equipment | US$ in thousands | 259,600 | 267,100 | 266,100 |
| Fixed asset turnover | 4.31 | 4.16 | 4.23 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,118,700K ÷ $259,600K
= 4.31
The fixed asset turnover ratio measures how well a company is utilizing its fixed assets to generate revenue. A higher ratio indicates that the company is generating more revenue relative to its investment in fixed assets. Embecta Corp's fixed asset turnover has shown a generally increasing trend over the past three years, increasing from 4.23 in 2022 to 4.16 in 2023 and further to 4.31 in 2024.
This improvement suggests that Embecta Corp has been able to generate more revenue from its fixed assets over the years, which may indicate improved operational efficiency, better asset utilization, or effective capital investment decisions. It is important for the company to continue monitoring and managing its fixed assets effectively to sustain or further improve its fixed asset turnover in the future.
Peer comparison
Sep 30, 2024