Jacobs Solutions Inc. (J)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,675,600 | 16,377,400 | 15,085,600 | 14,240,900 | 13,518,700 |
| Property, plant and equipment | US$ in thousands | 315,630 | 279,749 | 346,676 | 353,117 | 319,371 |
| Fixed asset turnover | 36.99 | 58.54 | 43.51 | 40.33 | 42.33 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,675,600K ÷ $315,630K
= 36.99
The fixed asset turnover of Jacobs Solutions Inc. has fluctuated over the past five years. In the most recent fiscal year ending September 30, 2024, the fixed asset turnover ratio was 36.99, indicating that the company generated $36.99 in revenue for every dollar invested in fixed assets. This represents a decrease compared to the previous year's ratio of 58.54.
The sharp decline in fixed asset turnover suggests that Jacobs Solutions Inc. may not be efficiently utilizing its fixed assets to generate sales revenue. This could be due to various factors such as underutilization of assets, inefficient production processes, or a decline in sales relative to fixed asset investments.
Comparing the 2024 ratio to the ratios from the preceding years, it is evident that Jacobs Solutions Inc. has experienced fluctuations in its fixed asset turnover performance. It is crucial for the company to investigate the underlying reasons for the decline and take necessary actions to improve the efficiency of its fixed asset utilization in order to enhance its financial performance and profitability.
Peer comparison
Sep 30, 2024