Fulgent Genetics Inc (FLGT)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 289,213 | 618,968 | 992,584 | 421,712 | 32,528 |
| Property, plant and equipment | US$ in thousands | 83,464 | 81,353 | 62,287 | 40,199 | 5,974 |
| Fixed asset turnover | 3.47 | 7.61 | 15.94 | 10.49 | 5.44 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $289,213K ÷ $83,464K
= 3.47
The fixed asset turnover ratio indicates how efficiently Fulgent Genetics Inc is utilizing its fixed assets to generate revenue. A higher ratio implies better asset utilization.
From the data provided, Fulgent Genetics Inc's fixed asset turnover ratio has fluctuated over the past five years. In 2023, the ratio was 3.47, representing a decrease from the previous year's ratio of 7.61. This indicates a lower level of efficiency in generating revenue from fixed assets compared to the prior year.
In 2022, the company achieved a high fixed asset turnover ratio of 7.61, signifying that it generated $7.61 in revenue for every dollar invested in fixed assets. This was a significant improvement from the ratio of 15.94 in 2021, suggesting that the company was more efficient in utilizing its fixed assets in 2022.
The trend continues with a ratio of 10.49 in 2020, which was also lower than 2019's ratio of 5.44. Overall, it is essential for Fulgent Genetics Inc to effectively manage and optimize its fixed assets to improve its fixed asset turnover ratio and enhance profitability.
Peer comparison
Dec 31, 2023