Edwards Lifesciences Corp (EW)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,997,700 | 5,362,000 | 5,219,100 | 4,382,800 | 4,333,200 |
| Property, plant and equipment | US$ in thousands | 1,749,400 | 1,632,800 | 1,546,600 | 1,395,200 | 1,060,300 |
| Fixed asset turnover | 3.43 | 3.28 | 3.37 | 3.14 | 4.09 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,997,700K ÷ $1,749,400K
= 3.43
Edwards Lifesciences Corp's fixed asset turnover has been relatively stable over the past five years, ranging from 3.14 to 4.10. The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher ratio indicates better efficiency in generating sales from fixed assets.
The company's fixed asset turnover increased from 3.14 in 2020 to 4.10 in 2019, suggesting improved efficiency in utilizing fixed assets to generate revenue. However, in the following years, the ratio fluctuated but remained within a relatively narrow range.
Overall, the trend in Edwards Lifesciences Corp's fixed asset turnover indicates that the company has been effectively utilizing its fixed assets to generate sales, with some fluctuations over the years. This stability in the ratio implies that the company is maintaining a consistent level of efficiency in utilizing its fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2023