FormFactor Inc (FORM)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 732,076 | 662,117 | 669,597 | 715,987 | 745,371 | 785,746 | 794,842 | 779,014 | 768,638 | 761,607 | 749,597 | 719,290 | 693,331 | 674,206 | 636,585 | 616,428 | 587,310 | 549,284 | 543,314 | 540,417 |
| Property, plant and equipment | US$ in thousands | 204,399 | 203,510 | 204,577 | 198,232 | 189,848 | 163,384 | 157,814 | 152,179 | 146,555 | 140,098 | 125,348 | 112,312 | 104,103 | 97,528 | 83,662 | 63,745 | 58,747 | 56,240 | 54,436 | 54,697 |
| Fixed asset turnover | 3.58 | 3.25 | 3.27 | 3.61 | 3.93 | 4.81 | 5.04 | 5.12 | 5.24 | 5.44 | 5.98 | 6.40 | 6.66 | 6.91 | 7.61 | 9.67 | 10.00 | 9.77 | 9.98 | 9.88 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $732,076K ÷ $204,399K
= 3.58
FormFactor Inc's fixed asset turnover has shown fluctuation over the past few quarters. The fixed asset turnover ratio measures how efficiently the company generates sales revenue from its investment in fixed assets.
From December 2019 to September 2020, FormFactor Inc experienced a steady increase in fixed asset turnover, indicating improved efficiency in utilizing its fixed assets to generate sales. The ratio peaked at 10.00 in March 2020, suggesting that the company generated $10 in sales for every $1 invested in fixed assets.
However, since March 2020, the fixed asset turnover ratio has been declining consistently. The ratio dropped to its lowest point of 3.25 in September 2023, indicating a decrease in the company's ability to generate sales from its fixed assets.
It is essential for FormFactor Inc to closely monitor and manage its fixed asset utilization to ensure optimal efficiency and maximize returns on its investments in fixed assets. Further analysis and actions may be required to improve the company's fixed asset turnover ratio and enhance overall operational performance.
Peer comparison
Dec 31, 2023