Gen Digital Inc. (GEN)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jul 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,812,000 | 3,792,000 | 3,777,000 | 3,577,000 | 2,658,000 | 2,427,000 | 2,193,000 | 2,137,000 | 2,796,000 | 2,752,000 | 2,689,000 | 2,623,000 | 2,551,000 | 2,493,000 | 2,472,000 | 2,454,000 | 2,490,000 | 2,493,000 | 2,490,000 | 2,494,000 |
| Property, plant and equipment | US$ in thousands | 72,000 | 76,000 | 75,000 | 73,000 | 76,000 | 104,000 | 108,000 | 56,000 | 60,000 | 63,000 | 67,000 | 71,000 | 78,000 | 70,000 | 75,000 | 88,000 | 238,000 | 365,000 | 676,000 | 784,000 |
| Fixed asset turnover | 52.94 | 49.89 | 50.36 | 49.00 | 34.97 | 23.34 | 20.31 | 38.16 | 46.60 | 43.68 | 40.13 | 36.94 | 32.71 | 35.61 | 32.96 | 27.89 | 10.46 | 6.83 | 3.68 | 3.18 |
March 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,812,000K ÷ $72,000K
= 52.94
Gen Digital Inc.'s fixed asset turnover has shown an upward trend over the past few quarters, indicating an improvement in the company's efficiency in generating sales from its fixed assets. The ratio has consistently increased from 3.18 in July 2019 to 52.94 in March 2024. This suggests that the company is using its fixed assets more effectively to generate revenue.
A high fixed asset turnover ratio is generally seen as favorable, as it indicates that the company is efficiently utilizing its fixed assets to generate sales. Gen Digital Inc.'s ratio of over 50 in March 2024 reflects the company's ability to generate significant sales relative to its investment in fixed assets. This efficiency could be attributed to effective asset management and utilization, which is crucial for maintaining profitability and competitiveness in the industry.
Overall, the increasing trend in Gen Digital Inc.'s fixed asset turnover ratio indicates improved operational efficiency and effective utilization of fixed assets to drive revenue growth. However, it is essential for the company to continue monitoring and optimizing its asset management practices to sustain this positive trend in the long term.
Peer comparison
Mar 31, 2024