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.