Enovis Corp (ENOV)
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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,686,970 | 1,644,437 | 1,618,961 | 1,609,752 | 2,233,580 | 2,223,925 | 2,803,536 | 3,374,247 | 3,230,088 | 3,659,152 | 3,499,192 | 3,133,624 | 3,070,769 | 3,131,020 | 3,171,608 | 3,459,895 | 3,327,458 | 3,424,311 | 3,101,814 | 2,754,024 |
| Property, plant and equipment | US$ in thousands | 270,798 | 260,190 | 260,754 | 245,989 | 236,741 | 225,176 | 226,894 | 504,583 | 235,113 | 510,828 | 480,119 | 479,240 | 486,960 | 463,775 | 469,255 | 468,241 | 491,241 | 478,806 | 488,956 | 647,608 |
| Fixed asset turnover | 6.23 | 6.32 | 6.21 | 6.54 | 9.43 | 9.88 | 12.36 | 6.69 | 13.74 | 7.16 | 7.29 | 6.54 | 6.31 | 6.75 | 6.76 | 7.39 | 6.77 | 7.15 | 6.34 | 4.25 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,686,970K ÷ $270,798K
= 6.23
The fixed asset turnover ratio measures how efficiently a company is generating revenue from its investments in fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
In the case of Enovis Corp, there is some fluctuation in the fixed asset turnover ratio over the quarters presented. The highest fixed asset turnover ratio was observed in Q2 2022 at 15.02, indicating that the company generated $15.02 in revenue for every dollar invested in fixed assets during that period. This could suggest that Enovis Corp was able to efficiently utilize its fixed assets to drive sales during Q2 2022.
However, in subsequent quarters, there was a decline in the fixed asset turnover ratio, with Q4 2023 showing the lowest ratio of 6.30. This decline may indicate a potential decrease in the efficiency of Enovis Corp's fixed asset utilization in generating revenue.
Overall, fluctuations in the fixed asset turnover ratio of Enovis Corp suggest variations in the efficiency of the company's asset utilization in generating sales over the specified quarters. Further analysis and investigation into the reasons behind these fluctuations could provide insights into the company's operations and performance.
Peer comparison
Dec 31, 2023