Hologic Inc (HOLX)
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 | 3,969,300 | 4,030,400 | 4,038,300 | 4,056,600 | 4,465,800 | 4,862,700 | 5,226,100 | 5,391,700 | 5,493,600 | 5,632,300 | 5,662,700 | 5,317,300 | 4,535,800 | 3,776,500 | 3,295,300 | 3,324,800 | 3,387,100 | 3,367,300 | 3,315,000 | 3,286,600 |
| Property, plant and equipment | US$ in thousands | 527,000 | 517,000 | 493,300 | 497,900 | 494,300 | 481,600 | 490,100 | 506,900 | 554,300 | 564,700 | 551,100 | 533,600 | 514,500 | 491,500 | 456,200 | 445,300 | 452,000 | 470,900 | 469,800 | 469,700 |
| Fixed asset turnover | 7.53 | 7.80 | 8.19 | 8.15 | 9.03 | 10.10 | 10.66 | 10.64 | 9.91 | 9.97 | 10.28 | 9.96 | 8.82 | 7.68 | 7.22 | 7.47 | 7.49 | 7.15 | 7.06 | 7.00 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,969,300K ÷ $527,000K
= 7.53
Fixed asset turnover is a crucial financial ratio that measures a company's ability to generate revenue from its investment in fixed assets, such as property, plant, and equipment.
In the case of Hologic Inc, the trend in fixed asset turnover over the past few quarters shows a general fluctuation but remains relatively high. The ratio has ranged from a low of 7.00 in the first quarter of 2019 to a peak of 10.66 in the second quarter of 2022. This indicates that the company has effectively utilized its fixed assets to generate sales revenue during these periods.
A higher fixed asset turnover suggests that the company is efficient in generating sales from its investment in fixed assets. Hologic's consistently high fixed asset turnover ratios indicate efficient utilization and management of its fixed assets, potentially leading to increased profitability and return on investment.
However, fluctuations in fixed asset turnover could also indicate changes in the company's business operations or asset base. It would be valuable to further investigate the reasons behind these fluctuations to better understand the company's capital expenditure strategy and operational efficiency.
Overall, Hologic Inc's strong fixed asset turnover demonstrates effective asset utilization, which is a positive sign for investors and stakeholders interested in the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023