KLA-Tencor Corporation (KLAC)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,819,410 | 10,214,300 | 9,049,650 | 6,918,730 | 5,806,420 |
| Property, plant and equipment | US$ in thousands | 1,109,970 | 1,031,840 | 849,929 | 663,027 | 519,824 |
| Fixed asset turnover | 8.85 | 9.90 | 10.65 | 10.44 | 11.17 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,819,410K ÷ $1,109,970K
= 8.85
The fixed asset turnover ratio for KLA-Tencor Corporation has exhibited a declining trend over the past five years. The ratio decreased from 11.17 in 2020 to 8.85 in 2024. This indicates that the company generated $8.85 in revenue for every dollar invested in fixed assets in 2024, down from $11.17 in 2020.
A decreasing fixed asset turnover ratio may suggest a decline in the efficiency of utilizing fixed assets to generate sales. It could be due to a decrease in sales relative to the level of investment in fixed assets or an increase in the value of fixed assets which has not been matched by a proportional increase in revenue generation.
Further analysis is required to understand the reasons behind the decline in the fixed asset turnover ratio and to evaluate the company's capital investment strategies, operational efficiency, and overall financial performance.
Peer comparison
Jun 30, 2024