Intuitive Surgical Inc (ISRG)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	7,616,100	6,548,300	5,970,600	4,546,000	4,583,900
Property, plant and equipment	US$ in thousands	3,537,600	2,374,200	1,876,400	1,577,300	1,272,900
Fixed asset turnover		2.15	2.76	3.18	2.88	3.60

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,616,100K ÷ $3,537,600K
= 2.15

Intuitive Surgical Inc's fixed asset turnover has exhibited a declining trend over the past five years, indicating a decreasing efficiency in utilizing fixed assets to generate sales revenue. The ratio decreased from 3.52 in 2019 to 2.01 in 2023. This decreasing trend suggests that the company may be experiencing challenges in effectively utilizing its investment in fixed assets to generate sales. Management should closely monitor and analyze the factors contributing to this decline to identify opportunities for improvement in asset utilization efficiency.