EPAM Systems Inc (EPAM)
Fixed asset turnover
| Dec 31, 2024 | 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,727,940 | 4,636,850 | 4,621,460 | 4,645,070 | 4,690,550 | 4,764,590 | 4,839,370 | 4,864,020 | 4,824,690 | 4,700,850 | 4,462,469 | 4,148,975 | 3,758,140 | 3,374,173 | 3,037,877 | 2,788,894 | 2,659,478 | 2,568,760 | 2,504,620 | 2,423,824 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 375,965 | 255,772 | 267,067 | 273,348 | 357,919 | 211,119 | 219,639 | 421,055 | 369,509 | 370,117 | 164,749 | 169,533 | 163,689 | 167,359 | 164,671 |
| Fixed asset turnover | — | — | — | — | — | 12.67 | 18.92 | 18.21 | 17.65 | 13.13 | 21.14 | 18.89 | 8.93 | 9.13 | 8.21 | 16.93 | 15.69 | 15.69 | 14.97 | 14.72 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,727,940K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company is generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio signifies that the company is utilizing its fixed assets effectively to generate sales.
Analyzing the fixed asset turnover ratio of EPAM Systems Inc over the provided period, we observe fluctuations in the ratio. The ratio increased from 14.72 in March 2020 to a peak of 21.14 in June 2022, indicating improved efficiency in generating sales revenue from fixed assets during this period.
However, there was a significant decline in the fixed asset turnover ratio from June 2022 to September 2022, reaching 13.13. This could suggest a decrease in sales generated relative to the fixed assets employed during this period.
The ratio then experienced fluctuations over the subsequent quarters, indicating varying levels of efficiency in utilizing fixed assets for revenue generation. It is noteworthy that the ratio reached its peak again at 18.92 in June 2023, showing improved efficiency in that quarter.
By the end of the period, the fixed asset turnover ratio stood at 12.67 in September 2023. Unfortunately, the data for the following quarters is not available, as the ratios for December 2023, March 2024, June 2024, September 2024, and December 2024 are indicated as not available.
Overall, it is essential for EPAM Systems Inc to consistently monitor and manage its fixed asset turnover ratio to ensure optimal utilization of fixed assets in generating sales revenue. Analyzing the trends and understanding the factors influencing the fluctuations in this ratio can provide insights for the company to make informed decisions regarding its asset management strategies.
Peer comparison
Dec 31, 2024