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