IPG Photonics Corporation (IPGP)

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	1,287,439	1,322,085	1,369,690	1,406,742	1,429,547	1,460,475	1,490,619	1,485,254	1,460,860	1,433,023	1,372,314	1,297,067	1,200,724	1,170,721	1,181,418	1,248,776	1,314,581	1,338,004	1,365,212	1,415,056
Property, plant and equipment	US$ in thousands	602,257	581,970	609,344	594,273	580,561	661,510	680,321	625,366	635,302	624,576	612,420	600,911	597,527	576,398	585,644	580,980	600,852	596,138	600,977	570,756
Fixed asset turnover		2.14	2.27	2.25	2.37	2.46	2.21	2.19	2.38	2.30	2.29	2.24	2.16	2.01	2.03	2.02	2.15	2.19	2.24	2.27	2.48

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,287,439K ÷ $602,257K
= 2.14

The fixed asset turnover ratio for IPG Photonics Corp has shown some variability over the past eight quarters, ranging from a low of 2.14 in Q4 2023 to a high of 2.46 in Q4 2022. This ratio measures the company's ability to generate sales revenue relative to its investment in fixed assets.

Generally, a higher fixed asset turnover ratio indicates that the company is able to generate more revenue from its fixed assets, which is a positive sign of efficiency. On the other hand, a lower ratio may suggest that the company is not effectively utilizing its fixed assets to generate sales.

Overall, IPG Photonics Corp has maintained a relatively stable fixed asset turnover ratio, hovering around the range of 2.14 to 2.46 over the past eight quarters. This indicates that the company has been fairly efficient in utilizing its fixed assets to generate revenue during this period. It would be beneficial for the company to continue monitoring and managing its fixed asset turnover ratio to ensure optimal utilization of its resources.