Glaukos Corp (GKOS)

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	373,901	353,962	331,942	313,252	303,223	293,554	286,692	278,963	272,731	274,744	281,666	290,488	292,910	292,904	283,025	236,490	222,935	215,550	208,628	235,970
Property, plant and equipment	US$ in thousands	97,867	98,581	100,230	101,858	103,212	103,075	102,674	98,331	94,403	87,307	80,921	74,708	68,969	60,800	54,380	43,314	24,008	23,408	23,210	22,760
Fixed asset turnover		3.82	3.59	3.31	3.08	2.94	2.85	2.79	2.84	2.89	3.15	3.48	3.89	4.25	4.82	5.20	5.46	9.29	9.21	8.99	10.37

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $373,901K ÷ $97,867K
= 3.82

The fixed asset turnover ratio measures how well Glaukos Corp is generating revenue from its fixed assets. A higher ratio indicates that the company is using its fixed assets efficiently to generate sales.

Analyzing the fixed asset turnover data provided, we can observe a noticeable decline in the ratio over the reported periods. The ratio decreased steadily from 10.37 on March 31, 2020, to 3.82 on December 31, 2024. This decline suggests that Glaukos Corp's ability to generate sales from its fixed assets has weakened over time.

The decreasing trend in the fixed asset turnover ratio may indicate several potential issues, such as underutilization of fixed assets, inefficiencies in operations, or declining sales relative to the value of fixed assets. Management should investigate the reasons behind this decline and take appropriate actions to improve the efficiency of asset utilization and overall business performance.

Overall, the declining fixed asset turnover ratio for Glaukos Corp signals a deteriorating efficiency in converting fixed assets into sales, highlighting the need for strategic interventions to enhance operational effectiveness and productivity in the future.