IDEXX Laboratories Inc (IDXX)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,660,950	3,367,320	3,215,360	2,706,660	2,406,910
Property, plant and equipment	US$ in thousands	702,177	649,474	587,667	555,167	533,845
Fixed asset turnover		5.21	5.18	5.47	4.88	4.51

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,660,950K ÷ $702,177K
= 5.21

Fixed asset turnover is a key financial ratio that measures how efficiently a company generates revenue from its fixed assets. In the case of Idexx Laboratories, Inc., the fixed asset turnover has been relatively high and increasing over the past five years. The company's ability to generate revenue from its fixed assets has improved consistently, with the ratio ranging from 4.51 in 2019 to 5.21 in 2023.

A fixed asset turnover above 1 indicates that the company is effective in utilizing its fixed assets to generate sales. Idexx Laboratories' consistently high fixed asset turnover ratios suggest that the company is efficient in managing its fixed assets to generate revenue. Higher fixed asset turnover ratios may indicate that the company has a lean asset base or that its fixed assets are highly utilized in generating sales.

Overall, the trend of increasing fixed asset turnover ratios for Idexx Laboratories, Inc. signifies the company's ability to efficiently utilize its fixed assets to drive revenue growth over the past five years.