Globus Medical (GMED)

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 1,568,476 1,226,440 1,096,949 1,068,982 1,022,843 998,366 973,939 961,307 958,102 941,526 927,903 825,809 789,042 767,264 747,381 792,998 785,368 769,639 742,660 721,505
Property, plant and equipment US$ in thousands 586,932 606,911 248,048 245,098 243,729 236,342 238,882 227,541 221,076 215,665 210,749 216,186 216,879 215,274 211,902 212,605 199,841 197,098 194,133 184,288
Fixed asset turnover 2.67 2.02 4.42 4.36 4.20 4.22 4.08 4.22 4.33 4.37 4.40 3.82 3.64 3.56 3.53 3.73 3.93 3.90 3.83 3.92

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,568,476K ÷ $586,932K
= 2.67

The fixed asset turnover ratio for Globus Medical Inc has shown fluctuation over the past eight quarters. In Q4 2023, the company recorded a fixed asset turnover of 2.67, reflecting an increase compared to the previous quarter. This indicates that the company generated $2.67 in revenue for every dollar invested in fixed assets during that quarter.

However, in Q3 2023, the fixed asset turnover was 2.02, showing a decrease from the previous quarter. This suggests that the company was less efficient in utilizing its fixed assets to generate revenue compared to Q4 2023.

The highest fixed asset turnover ratio in the provided data was seen in Q2 2023 at 4.42, indicating that the company was able to generate $4.42 in revenue for every dollar invested in fixed assets during that period. This reflects a high level of efficiency in utilizing fixed assets to generate sales.

Overall, the fixed asset turnover ratio for Globus Medical Inc has shown variability over the quarters, with some periods demonstrating higher efficiency in generating revenue from fixed assets than others. It would be important to further investigate the factors contributing to these fluctuations to assess the company's operational efficiency and asset utilization strategies.


Peer comparison

Dec 31, 2023