Harmonic Inc (HLIT)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 603,758 | 619,917 | 501,650 | 359,569 | 385,878 |
| Property, plant and equipment | US$ in thousands | 36,683 | 39,814 | 42,721 | 43,141 | 22,928 |
| Fixed asset turnover | 16.46 | 15.57 | 11.74 | 8.33 | 16.83 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $603,758K ÷ $36,683K
= 16.46
Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates more efficient use of fixed assets in generating sales.
Analyzing Harmonic, Inc.'s fixed asset turnover ratio over the past five years, we observe a consistent upward trend from 2019 to 2022, with a peak in 2019 at 17.57 and a subsequent dip in 2020 to 8.78. This sudden drop in 2020 suggests a potential decrease in the company's efficiency in utilizing its fixed assets to generate revenue. However, the ratio then significantly increased in 2021 and 2022, reaching 11.87 and 15.70, respectively.
In 2023, Harmonic, Inc.'s fixed asset turnover ratio continued to improve, reaching 16.57. This indicates that the company has been able to generate $16.57 in revenue for every dollar invested in fixed assets during the year. Overall, the increasing trend in fixed asset turnover since 2020 suggests that Harmonic, Inc. has been more effectively utilizing its fixed assets to drive sales and improve operational efficiency.
Peer comparison
Dec 31, 2023