Keysight Technologies Inc (KEYS)
Fixed asset turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,979,000 | 5,464,000 | 5,420,000 | 4,941,000 | 4,221,000 |
| Property, plant and equipment | US$ in thousands | 774,000 | 761,000 | 690,000 | 650,000 | 595,000 |
| Fixed asset turnover | 6.43 | 7.18 | 7.86 | 7.60 | 7.09 |
October 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,979,000K ÷ $774,000K
= 6.43
Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Keysight Technologies Inc, the fixed asset turnover has shown a decreasing trend over the past five years. In 2024, the fixed asset turnover ratio was 6.43, down from 7.18 in 2023 and continuing the decline from 7.86 in 2022 and 7.60 in 2021. However, it is worth noting that the ratio improved from 7.09 in 2020.
A high fixed asset turnover ratio indicates that the company is generating more revenue relative to its investment in fixed assets, which is generally seen as positive. Conversely, a decreasing fixed asset turnover ratio may suggest inefficiency in asset utilization or declining sales relative to the investment in fixed assets. Keysight Technologies Inc should evaluate the reasons behind this decline and consider strategies to optimize the utilization of its fixed assets to improve its operational efficiency and profitability.
Peer comparison
Oct 31, 2024