Exponent Inc (EXPO)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 536,766 | 513,293 | 466,269 | 399,900 | 417,199 |
| Property, plant and equipment | US$ in thousands | 75,318 | 65,539 | 59,971 | 59,823 | 61,587 |
| Fixed asset turnover | 7.13 | 7.83 | 7.77 | 6.68 | 6.77 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $536,766K ÷ $75,318K
= 7.13
Exponent Inc's fixed asset turnover over the past five years has demonstrated relatively stable performance, ranging between 6.68 and 7.83. The fixed asset turnover ratio measures the company's efficiency in generating revenue from its investments in fixed assets. A higher fixed asset turnover ratio indicates that the company is able to generate more sales per unit of fixed assets, which is generally considered favorable as it signifies efficient asset utilization.
Exponent Inc's fixed asset turnover ratios have consistently been above 6, indicating that the company is effectively utilizing its fixed assets to generate revenue. The slight fluctuations in the ratio over the years may be attributed to changes in the company's operations, investment in fixed assets, or fluctuations in its revenue generation.
Overall, Exponent Inc's fixed asset turnover ratios suggest that the company has been efficient in utilizing its fixed assets to generate sales revenue over the past five years, though it is always advisable to compare these ratios with industry benchmarks for a more comprehensive analysis of the company's asset efficiency.
Peer comparison
Dec 31, 2023