ESCO Technologies Inc (ESE)
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 | 959,068 | 947,264 | 931,693 | 903,174 | 880,215 | 852,649 | 802,596 | 765,775 | 728,079 | 714,210 | 717,564 | 707,792 | 720,752 | 727,651 | 756,279 | 782,930 | 797,707 | 810,997 | 805,425 | 799,855 |
| Property, plant and equipment | US$ in thousands | 159,262 | 155,484 | 155,337 | 154,020 | 155,722 | 156,000 | 155,961 | 156,963 | 155,712 | 154,300 | 141,967 | 143,401 | 141,538 | 139,900 | 141,461 | 139,248 | 135,576 | 127,843 | 151,545 | 132,806 |
| Fixed asset turnover | 6.02 | 6.09 | 6.00 | 5.86 | 5.65 | 5.47 | 5.15 | 4.88 | 4.68 | 4.63 | 5.05 | 4.94 | 5.09 | 5.20 | 5.35 | 5.62 | 5.88 | 6.34 | 5.31 | 6.02 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $959,068K ÷ $159,262K
= 6.02
The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. Esco Technologies, Inc. has shown a consistent trend of improvement in its fixed asset turnover ratio over the past eight quarters. The ratio has increased from 4.89 in Q2 2022 to 6.08 in Q1 2024, indicating that the company is utilizing its fixed assets more effectively to generate sales.
A higher fixed asset turnover ratio suggests that Esco Technologies is generating more revenue per dollar invested in fixed assets. This could be a positive sign of efficient asset management, optimal utilization of resources, and effective operational performance.
The steady improvement in the fixed asset turnover ratio indicates that Esco Technologies is becoming more efficient in utilizing its fixed assets over time. This could be driven by factors such as increased productivity, better asset utilization, or strategic investments in machinery and equipment.
Overall, the upward trend in the fixed asset turnover ratio of Esco Technologies, Inc. reflects a positive performance in asset management and operational efficiency, which may contribute to the company's overall financial health and profitability.
Peer comparison
Dec 31, 2023