Integer Holdings Corp (ITGR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,533,820 | 1,330,020 | 1,187,800 | 1,040,450 | 1,207,820 |
| Property, plant and equipment | US$ in thousands | 407,954 | 317,243 | 277,099 | 253,964 | 246,185 |
| Fixed asset turnover | 3.76 | 4.19 | 4.29 | 4.10 | 4.91 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,533,820K ÷ $407,954K
= 3.76
Fixed asset turnover measures how efficiently a company generates revenue from its fixed assets. Integer Holdings Corp's fixed asset turnover has exhibited a declining trend over the past five years, decreasing from 5.11 in 2019 to 3.80 in 2023. This trend may indicate a decrease in the efficiency of utilizing fixed assets to generate revenue.
A high fixed asset turnover ratio generally indicates that the company is effectively using its fixed assets to generate sales. On the other hand, a declining trend in the fixed asset turnover ratio may suggest that the company's fixed assets are not being utilized as efficiently as in previous years.
It is important for Integer Holdings Corp to closely monitor this trend and assess the reasons behind the decreasing fixed asset turnover. This analysis could help management identify potential inefficiencies in the utilization of fixed assets and take corrective actions to improve operational efficiency and profitability over time.
Peer comparison
Dec 31, 2023