Entegris Inc (ENTG)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,241,210 | 3,523,930 | 3,282,030 | 2,298,890 | 1,859,310 |
| Property, plant and equipment | US$ in thousands | 1,622,930 | 1,468,040 | 1,393,340 | 654,098 | 525,367 |
| Fixed asset turnover | 2.00 | 2.40 | 2.36 | 3.51 | 3.54 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,241,210K ÷ $1,622,930K
= 2.00
The fixed asset turnover ratio of Entegris Inc has shown a declining trend over the past five years. In 2020, the company had a fixed asset turnover of 3.54, indicating that for each dollar invested in fixed assets, the company generated $3.54 in revenue. However, this ratio decreased to 3.51 in 2021, 2.36 in 2022, 2.40 in 2023, and further dropped to 2.00 in 2024.
This decline may suggest that the company is becoming less efficient in utilizing its fixed assets to generate sales. A lower fixed asset turnover ratio could indicate potential issues such as inefficient asset management, underutilization of fixed assets, or lower sales relative to the investment in fixed assets.
Entegris Inc may need to evaluate its asset utilization strategies, improve operational efficiency, or consider reevaluating its investment in fixed assets to enhance productivity and profitability. Further analysis of the company's operational performance and asset management practices may be necessary to address the declining trend in fixed asset turnover.
Peer comparison
Dec 31, 2024