Illumina Inc (ILMN)

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	4,504,000	4,465,000	4,461,000	4,447,000	4,583,000	4,699,000	4,692,000	4,656,000	4,526,000	4,280,000	3,966,000	3,473,000	3,239,000	3,238,000	3,351,000	3,556,000	3,543,000	3,458,000	3,404,000	3,396,000
Property, plant and equipment	US$ in thousands	1,007,000	1,040,000	1,069,000	1,082,000	1,091,000	1,068,000	1,055,000	1,034,000	1,024,000	1,009,000	915,000	915,000	922,000	910,000	890,000	890,000	889,000	875,000	854,000	852,000
Fixed asset turnover		4.47	4.29	4.17	4.11	4.20	4.40	4.45	4.50	4.42	4.24	4.33	3.80	3.51	3.56	3.77	4.00	3.99	3.95	3.99	3.99

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,504,000K ÷ $1,007,000K
= 4.47

The fixed asset turnover of Illumina Inc has been relatively stable over the past eight quarters, ranging from 4.11 to 4.50. This ratio indicates that, on average, the company generates around $4.11 to $4.50 in revenue for every dollar invested in fixed assets. A higher fixed asset turnover ratio is generally preferred as it suggests that the company is efficiently utilizing its fixed assets to generate sales.

The slight fluctuations in the fixed asset turnover ratio may indicate variations in how effectively Illumina is utilizing its fixed assets to generate revenue. It is important for the company to continue monitoring and optimizing its asset utilization to ensure efficient operations and profitability.

Overall, with a consistently high fixed asset turnover ratio, Illumina Inc appears to be effectively managing its fixed assets to drive revenue generation.