J & J Snack Foods Corp (JJSF)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,574,760 | 1,558,810 | 1,380,640 | 1,144,480 | 1,022,040 |
| Property, plant and equipment | US$ in thousands | 391,185 | 385,903 | 335,367 | 267,187 | 261,616 |
| Fixed asset turnover | 4.03 | 4.04 | 4.12 | 4.28 | 3.91 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,574,760K ÷ $391,185K
= 4.03
Fixed asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its investment in fixed assets. The ratio is calculated by dividing net sales by average fixed assets. For J & J Snack Foods Corp, the fixed asset turnover has been consistently high over the past five years, ranging from 3.91 to 4.28.
A high fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales. In the case of J & J Snack Foods Corp, the trend of the fixed asset turnover ratio increasing from 2020 to 2021, peaking in 2021, and then slightly declining in the subsequent years suggests that the company has been efficient in utilizing its fixed assets to drive sales growth.
Overall, the high and relatively stable fixed asset turnover ratio of J & J Snack Foods Corp indicates that the company efficiently utilizes its fixed assets to generate revenue, which is a positive sign of operational efficiency and effective asset management.