FormFactor Inc (FORM)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 763,599 | 742,279 | 705,937 | 664,379 | 663,102 | 660,926 | 670,220 | 718,211 | 747,937 | 786,948 | 796,043 | 780,212 | 769,674 | 761,719 | 749,751 | 719,499 | 693,616 | 675,202 | 637,810 | 618,004 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | — | 204,577 | 198,232 | 189,848 | 194,892 | 191,313 | 152,179 | 181,765 | 176,767 | 163,833 | 112,312 | 104,103 | 97,528 | 83,662 | 63,745 |
| Fixed asset turnover | — | — | — | — | — | — | 3.28 | 3.62 | 3.94 | 4.04 | 4.16 | 5.13 | 4.23 | 4.31 | 4.58 | 6.41 | 6.66 | 6.92 | 7.62 | 9.69 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $763,599K ÷ $—K
= —
FormFactor Inc's fixed asset turnover ratio has shown a declining trend over the analyzed period, indicating a decrease in the efficiency of the company's fixed assets utilization to generate sales revenue. The ratio decreased from 9.69 in March 2020 to 3.94 in December 2022.
A high fixed asset turnover ratio is usually preferred as it indicates that the company is effectively using its fixed assets to generate sales. Conversely, a decreasing ratio suggests that the company might be facing challenges in efficiently utilizing its fixed assets or that sales are not increasing in proportion to the investment in fixed assets.
FormFactor Inc should closely monitor the trend in the fixed asset turnover ratio and identify the underlying factors causing the decline. It may need to assess its fixed asset management strategies, production efficiency, sales growth, and overall operational performance to improve the utilization of fixed assets and enhance profitability.
Peer comparison
Dec 31, 2024