Ichor Holdings Ltd (ICHR)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	791,741	1,269,010	1,089,730	905,509	610,190
Property, plant and equipment	US$ in thousands	92,755	98,055	85,204	41,811	44,541
Fixed asset turnover		8.54	12.94	12.79	21.66	13.70

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $791,741K ÷ $92,755K
= 8.54

Ichor Holdings Ltd's fixed asset turnover has exhibited variability over the past five years. The ratio decreased from 13.70 in 2019 to 8.54 in 2023, with fluctuations in between. A higher fixed asset turnover generally indicates more efficient utilization of fixed assets to generate sales. In this case, the sharp decrease in 2023 may indicate a potential decline in sales relative to the company's fixed assets. Further investigation into the reasons behind this trend is warranted to assess the overall operational efficiency and asset management of Ichor Holdings Ltd.