FormFactor Inc (FORM)

Total 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
Total assets	US$ in thousands	1,146,220	1,153,780	1,156,260	1,119,800	1,106,790	1,032,970	1,025,140	1,019,760	1,008,230	1,022,360	1,042,450	1,056,880	1,020,520	1,006,590	988,546	980,211	963,217	915,607	884,234	849,379
Total asset turnover		0.67	0.64	0.61	0.59	0.60	0.64	0.65	0.70	0.74	0.77	0.76	0.74	0.75	0.76	0.76	0.73	0.72	0.74	0.72	0.73

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $763,599K ÷ $1,146,220K
= 0.67

FormFactor Inc's total asset turnover has shown fluctuations over the period under review. The total asset turnover ratio measures the efficiency of the company in generating sales revenue from its total assets. A higher total asset turnover ratio indicates better asset utilization.

From March 31, 2020, to June 30, 2022, the total asset turnover ratio remained relatively stable, ranging from 0.72 to 0.76. This suggests that the company was effectively using its assets to generate sales during this period. However, there was a slight decline in the ratio from 0.76 on June 30, 2022, to 0.59 on March 31, 2024.

The decrease in the total asset turnover ratio from June 30, 2022, to March 31, 2024, may imply that FormFactor Inc's efficiency in generating sales from its assets decreased during this period. It could indicate potential issues with asset utilization or a decrease in sales relative to the size of the asset base.

Overall, the downward trend in FormFactor Inc's total asset turnover ratio towards the end of the period may warrant further investigation into the company's operational efficiency and asset management practices to ensure sustainable growth and profitability in the future.