Intuitive Surgical Inc (ISRG)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	8,961,500	8,492,700	8,113,000	7,821,700	7,616,100	7,306,600	7,073,300	6,797,300	6,548,300	6,326,000	6,171,000	6,121,000	5,900,400	5,678,800	5,338,700	4,705,300	4,491,300	4,439,900	4,466,200	4,687,300
Property, plant and equipment	US$ in thousands	4,646,600	4,433,000	4,116,800	3,799,600	3,537,600	3,077,000	2,830,800	2,580,200	2,374,200	2,243,700	2,109,300	1,968,200	1,876,400	1,737,900	1,651,200	1,592,900	1,577,300	1,509,700	1,450,300	1,369,200
Fixed asset turnover		1.93	1.92	1.97	2.06	2.15	2.37	2.50	2.63	2.76	2.82	2.93	3.11	3.14	3.27	3.23	2.95	2.85	2.94	3.08	3.42

December 31, 2024 calculation

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

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue.

Analyzing the fixed asset turnover of Intuitive Surgical Inc over the period from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio. The ratio decreased from 3.42 on March 31, 2020, to 1.93 on December 31, 2024, indicating a decline in the efficiency of utilizing fixed assets to generate sales over the period.

The trend shows a gradual decline in the fixed asset turnover ratio, with intermittent fluctuations. This may suggest potential inefficiencies in asset utilization, such as underutilization of fixed assets or a decrease in revenue generation relative to the value of fixed assets.

It is essential for Intuitive Surgical Inc to closely monitor and address the factors affecting the fixed asset turnover ratio to ensure optimal utilization of fixed assets and maximize revenue generation. Further analysis of operational efficiencies and strategic investment decisions may be necessary to improve the efficiency of fixed asset utilization.