ESCO Technologies Inc (ESE)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 947,264 | 852,649 | 715,135 | 728,985 | 816,796 |
| Property, plant and equipment | US$ in thousands | 155,484 | 156,000 | 154,300 | 139,900 | 127,843 |
| Fixed asset turnover | 6.09 | 5.47 | 4.63 | 5.21 | 6.39 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $947,264K ÷ $155,484K
= 6.09
The fixed asset turnover ratio measures a company's ability to generate revenue from its fixed assets. Esco Technologies, Inc.'s fixed asset turnover has seen a positive trend over the past five years, increasing from 5.03 in 2019 to 6.15 in 2023. This suggests that the company has become more efficient in utilizing its fixed assets to generate sales. The significant improvement in 2021, with a ratio of 4.64 jumping to 5.50 in 2022, demonstrates a noticeable increase in productivity. The latest ratio of 6.15 indicates that for every dollar invested in fixed assets, Esco Technologies, Inc. generated approximately $6.15 in sales, reflecting strong asset utilization and operational efficiency. Overall, the upward trend in the fixed asset turnover ratio signifies a positive development in the company's asset management and revenue generation capabilities.
Peer comparison
Sep 30, 2023