Intuitive Surgical Inc (ISRG)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	8,961,500	7,616,100	6,548,300	5,970,600	4,546,000
Property, plant and equipment	US$ in thousands	4,646,600	3,537,600	2,374,200	1,876,400	1,577,300
Fixed asset turnover		1.93	2.15	2.76	3.18	2.88

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,961,500K ÷ $4,646,600K
= 1.93

The fixed asset turnover ratio measures the efficiency of a company in generating sales revenue from its fixed assets. Looking at the trend for Intuitive Surgical Inc over the years, we observe fluctuations in the fixed asset turnover ratio.

In 2020, the ratio was 2.88, indicating that the company generated $2.88 in sales for every dollar invested in fixed assets. This ratio increased to 3.18 in 2021, suggesting improved efficiency in utilizing fixed assets to generate revenue.

However, in 2022, there was a decline in the fixed asset turnover ratio to 2.76, which may indicate a decrease in sales generated per dollar of investment in fixed assets. The trend continued downwards in 2023 with a fixed asset turnover ratio of 2.15, signaling a further reduction in efficiency in utilizing fixed assets for revenue generation.

By the end of 2024, the fixed asset turnover ratio dropped to 1.93, indicating a significant decline in the efficiency of Intuitive Surgical Inc in generating sales from its fixed assets. This downward trend in the fixed asset turnover ratio over the years may raise concerns about the company's asset utilization and operational efficiency. Additional analysis and investigation would be required to understand the factors contributing to this decrease and to implement strategies to improve the efficiency of fixed asset utilization in the future.