FormFactor Inc (FORM)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 733,352 | 744,811 | 767,046 | 693,269 | 586,655 |
| Property, plant and equipment | US$ in thousands | 204,399 | 189,848 | 146,555 | 104,103 | 58,747 |
| Fixed asset turnover | 3.59 | 3.92 | 5.23 | 6.66 | 9.99 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $733,352K ÷ $204,399K
= 3.59
FormFactor Inc's fixed asset turnover has shown a declining trend over the past five years, from 9.99 in 2019 to 3.59 in 2023. This indicates that the company is generating less revenue from its fixed assets relative to the previous years. A high fixed asset turnover ratio generally indicates efficient utilization of fixed assets to generate sales, while a decreasing ratio may suggest a decrease in operational efficiency or a change in the asset base. Further analysis is needed to determine the reasons behind this decline and to assess the impact on the company's overall financial performance and operational effectiveness.
Peer comparison
Dec 31, 2023