Embecta Corp (EMBC)

Fixed asset turnover

		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	1,116,800	1,115,200	1,110,600	1,115,600	1,108,100	1,123,300
Property, plant and equipment	US$ in thousands	268,700	267,100	275,000	279,200	279,400	266,100	339,600	355,700	436,500
Fixed asset turnover		4.16	4.18	4.04	4.00	3.97	4.22

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,116,800K ÷ $268,700K
= 4.16

The fixed asset turnover ratio for Embecta Corp has been relatively stable over the past few quarters, ranging from 3.97 to 4.22. This indicates that the company is generating, on average, between $3.97 and $4.22 in revenue for every dollar invested in fixed assets.

The high fixed asset turnover ratios suggest that Embecta Corp is effectively utilizing its fixed assets to generate sales. This could be a positive sign of operational efficiency and effective asset management within the company.

However, the slight fluctuations in the fixed asset turnover ratio over the quarters may indicate some variability in the company's ability to generate revenue from its fixed assets consistently. It would be important to further investigate the reasons behind these fluctuations to understand whether they are due to changes in the company's operational efficiency, changes in industry conditions, or other factors.