Keysight Technologies Inc (KEYS)

Fixed asset turnover

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Revenue (ttm)	US$ in thousands	5,342,000	5,464,000	5,596,000	5,590,000	5,551,000	5,420,000	5,271,000	5,141,000	5,011,000	4,941,000	4,867,000	4,632,000	4,306,000	4,221,000	4,121,000	4,197,000	4,392,000	4,303,000	4,171,000	4,088,000
Property, plant and equipment	US$ in thousands	771,000	761,000	754,000	746,000	728,000	690,000	668,000	664,000	672,000	650,000	616,000	598,000	597,000	595,000	584,000	575,000	578,000	576,000	568,000	563,000
Fixed asset turnover		6.93	7.18	7.42	7.49	7.62	7.86	7.89	7.74	7.46	7.60	7.90	7.75	7.21	7.09	7.06	7.30	7.60	7.47	7.34	7.26

January 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,342,000K ÷ $771,000K
= 6.93

The fixed asset turnover ratio for Keysight Technologies Inc has been consistently high over the past eight quarters, ranging from 6.93 to 7.89. This indicates that the company is generating significant revenue relative to its investment in fixed assets each period. The higher the fixed asset turnover ratio, the more efficiently the company is utilizing its fixed assets to generate sales.

The trend of increasing fixed asset turnover from Q1 2023 to Q2 2023 followed by a slight decline thereafter suggests that Keysight Technologies Inc initially improved its efficiency in using fixed assets to generate sales but may have encountered some challenges in maintaining this peak performance.

Overall, a high and stable fixed asset turnover ratio is a positive indicator of financial health, demonstrating effective asset management and operational efficiency within the company. However, management should continue to monitor this ratio closely to ensure ongoing optimal utilization of fixed assets to drive revenue growth.