Ethan Allen Interiors Inc (ETD)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 646,141 | 664,729 | 704,624 | 740,509 | 791,146 | 1,224,074 | 1,235,417 | 1,240,349 | 1,208,177 | 766,074 | 745,377 | 716,110 | 684,846 | 598,414 | 571,226 | 566,974 | 589,837 | 682,187 | 710,242 | 732,820 |
| Property, plant and equipment | US$ in thousands | 215,258 | 219,013 | 219,492 | 221,504 | 222,167 | 223,284 | 223,702 | 221,779 | 223,530 | 223,067 | 222,195 | 228,144 | 231,446 | 233,331 | 234,425 | 234,877 | 236,678 | 242,490 | 245,271 | 244,574 |
| Fixed asset turnover | 3.00 | 3.04 | 3.21 | 3.34 | 3.56 | 5.48 | 5.52 | 5.59 | 5.40 | 3.43 | 3.35 | 3.14 | 2.96 | 2.56 | 2.44 | 2.41 | 2.49 | 2.81 | 2.90 | 3.00 |
June 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $646,141K ÷ $215,258K
= 3.00
The fixed asset turnover ratio measures how efficiently a company generates sales from its investment in fixed assets. A higher ratio indicates that the company is using its fixed assets more effectively to generate revenue.
Looking at the fixed asset turnover ratio for Ethan Allen Interiors Inc over the past few quarters, we observe fluctuations in the ratio. The ratio ranged from 2.41 to 5.59 during the period under review.
The ratio was relatively stable and above 3.00 from Dec 31, 2021, to Sep 30, 2022, suggesting consistent and efficient utilization of fixed assets during that period.
There was a significant increase in the fixed asset turnover ratio in the first two quarters of 2023, especially in Mar 31, 2023, and Jun 30, 2023, reaching values of 5.48 and 3.56, respectively. This implies that the company was able to generate a higher level of sales relative to its fixed asset base during those periods.
However, the ratio started to decline in the latter part of 2023 and continued to decrease into 2024, reaching values ranging from 3.00 to 3.04. This could indicate a decrease in sales relative to the company's fixed asset investments during that time.
Overall, while there have been fluctuations in the fixed asset turnover ratio for Ethan Allen Interiors Inc, the company generally maintained a relatively high level of efficiency in generating sales from its fixed assets, with some periods showing particularly strong performance. Continued monitoring of this ratio will be key to understanding the company's ongoing operational efficiency and asset utilization.