IPG Photonics Corporation (IPGP)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,287,440	1,429,550	1,460,860	1,200,720	1,314,580
Property, plant and equipment	US$ in thousands	602,257	580,561	635,302	597,527	600,852
Fixed asset turnover		2.14	2.46	2.30	2.01	2.19

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,287,440K ÷ $602,257K
= 2.14

Fixed asset turnover measures how efficiently a company is using its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more sales revenue for each dollar invested in fixed assets.

Looking at the trend for IPG Photonics Corp over the past five years, we can see some fluctuations in the fixed asset turnover ratio. In 2023, the ratio decreased to 2.14 from 2.46 in 2022, indicating a slight decrease in efficiency in utilizing fixed assets to generate sales. However, the ratio in 2023 is still higher compared to the ratios in 2020 and 2019, suggesting an improvement in efficiency over the long term.

Overall, IPG Photonics Corp has shown a generally stable and efficient utilization of its fixed assets to generate sales revenue, with some fluctuations in the ratio from year to year. Further analysis of the underlying factors affecting the company's fixed asset turnover ratio, such as changes in production efficiency or asset utilization, would provide more insights into its operational performance.