ESCO Technologies Inc (ESE)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,011,550 | 947,264 | 852,649 | 715,135 | 728,985 |
| Property, plant and equipment | US$ in thousands | 170,596 | 155,500 | 156,000 | 154,300 | 139,900 |
| Fixed asset turnover | 5.93 | 6.09 | 5.47 | 4.63 | 5.21 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,011,550K ÷ $170,596K
= 5.93
ESCO Technologies Inc's fixed asset turnover has fluctuated over the past five years, with values ranging from 4.63 to 6.09. The fixed asset turnover ratio measures the efficiency with which the company utilizes its fixed assets to generate sales. A higher fixed asset turnover ratio indicates that the company is generating more sales per dollar of fixed assets.
In this case, ESCO Technologies Inc's fixed asset turnover has generally been strong, indicating effective utilization of its fixed assets to generate revenues. The slight fluctuations in the ratio suggest changes in the company's operational efficiency and asset utilization over the years.
The increasing trend from 5.21 in 2020 to 6.09 in 2023, followed by a slight decrease to 5.93 in 2024, may indicate improvements in asset utilization in the earlier years and potential adjustments or changes in the business's operations in the most recent period.
Overall, ESCO Technologies Inc's fixed asset turnover ratio reflects the company's ability to generate sales efficiently using its fixed assets, which is a positive indicator of operational performance and asset management.
Peer comparison
Sep 30, 2024