Globus Medical (GMED)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,568,480 | 1,022,840 | 958,102 | 789,042 | 785,368 |
| Property, plant and equipment | US$ in thousands | 586,932 | 243,729 | 221,076 | 216,879 | 199,841 |
| Fixed asset turnover | 2.67 | 4.20 | 4.33 | 3.64 | 3.93 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,568,480K ÷ $586,932K
= 2.67
The fixed asset turnover ratio for Globus Medical Inc has displayed some fluctuations over the past five years. In 2023, the fixed asset turnover was 2.67, indicating that the company generated $2.67 in revenue for every dollar invested in fixed assets. This represented a decline from the previous year's ratio of 4.20.
The peak performance in terms of fixed asset turnover was observed in 2021, at a ratio of 4.33, suggesting efficient utilization of fixed assets to generate revenue. However, there was a slight decrease in 2022 to 4.20.
In 2020 and 2019, the fixed asset turnover ratios were 3.64 and 3.93 respectively, indicating relatively consistent performance in utilizing fixed assets to generate revenue during those years.
Overall, the trend in fixed asset turnover for Globus Medical Inc demonstrates some variability, with fluctuations observed in recent years. The company may need to assess its fixed asset management strategies to ensure optimal utilization and efficiency going forward.
Peer comparison
Dec 31, 2023