Embecta Corp (EMBC)

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
Revenue (ttm)	US$ in thousands	1,117,100	1,113,300	1,126,900	1,116,800	1,115,200	1,110,600	1,115,600	1,108,100	1,123,300
Property, plant and equipment	US$ in thousands	259,600	259,800	261,200	268,700	267,100	275,000	279,200	279,400	266,100	339,600	355,700	436,500
Fixed asset turnover		4.30	4.29	4.31	4.16	4.18	4.04	4.00	3.97	4.22

September 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,117,100K ÷ $259,600K
= 4.30

The fixed asset turnover ratio reflects Embecta Corp's efficiency in generating sales revenue relative to its investment in fixed assets. Over the past few quarters, the company has maintained a fairly stable fixed asset turnover ratio, ranging from 4.00 to 4.31. This consistency suggests that Embecta Corp is effectively utilizing its fixed assets to generate revenue.

A high fixed asset turnover ratio indicates that the company is maximizing the use of its fixed assets to generate sales, which is generally seen as positive. Embecta Corp's ratios between 4.00 and 4.31 indicate that, on average, every dollar invested in fixed assets is generating between $4.00 and $4.31 in sales. This suggests efficient utilization of its fixed assets to drive revenue growth.

Overall, Embecta Corp's performance in terms of fixed asset turnover seems to be stable and efficient, indicating effective management of its fixed assets to generate sales. However, it would be valuable to compare this ratio with industry benchmarks or competitors to assess Embecta Corp's performance in a broader context.