Ichor Holdings Ltd (ICHR)

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	791,741	890,431	1,051,200	1,198,719	1,269,013	1,256,502	1,165,476	1,118,696	1,089,729	1,047,699	1,011,957	950,502	905,509	849,443	775,610	692,781	610,190	562,064	582,925	693,162
Property, plant and equipment	US$ in thousands	92,755	96,240	98,914	101,481	98,055	95,577	91,603	86,003	85,204	53,087	52,374	46,849	41,811	44,574	45,631	44,486	44,541	43,056	43,444	43,945
Fixed asset turnover		8.54	9.25	10.63	11.81	12.94	13.15	12.72	13.01	12.79	19.74	19.32	20.29	21.66	19.06	17.00	15.57	13.70	13.05	13.42	15.77

December 31, 2023 calculation

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

Fixed asset turnover is a financial ratio that measures a company's ability to generate sales using its fixed assets. A higher fixed asset turnover ratio indicates that the company is more efficient in utilizing its fixed assets to generate revenue.

Looking at the trend of fixed asset turnover for Ichor Holdings Ltd over the past few quarters, we can see that the ratio has generally been increasing. This suggests that the company's efficiency in utilizing its fixed assets to generate sales has been improving over time.

The ratio has shown fluctuations from quarter to quarter, with some quarters exhibiting significant increases while others show slight decreases. Overall, the trend indicates that the company has been able to generate more revenue per fixed asset, which is a positive sign of effective asset management and operational efficiency.

It is worth noting that the fixed asset turnover ratio reached its highest point in the most recent quarter, indicating a notable improvement in asset utilization efficiency. This trend suggests that the company may be making strategic investments in its fixed assets that are effectively boosting its revenue generation capabilities.

In conclusion, the increasing trend in Ichor Holdings Ltd's fixed asset turnover ratio reflects improving efficiency in utilizing its fixed assets to drive sales, which could potentially lead to enhanced profitability and shareholder value in the long run.