Kulicke and Soffa Industries Inc (KLIC)

Fixed asset turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	706,232	742,491	1,503,620	1,517,660	623,176
Property, plant and equipment	US$ in thousands	64,823	110,051	80,908	67,982	59,147
Fixed asset turnover		10.89	6.75	18.58	22.32	10.54

September 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $706,232K ÷ $64,823K
= 10.89

Fixed asset turnover is a financial ratio that measures a company's ability to generate sales from its fixed assets. It indicates how efficiently a company is using its fixed assets to generate revenue. A higher fixed asset turnover ratio generally suggests better efficiency in utilizing fixed assets to generate sales.

Analyzing Kulicke and Soffa Industries Inc's fixed asset turnover ratio over the past five years shows fluctuations in the efficiency of their fixed asset utilization. The fixed asset turnover ratio was 10.89 in 2024, which is significantly higher compared to the previous year. This indicates that the company was able to generate $10.89 in sales for every dollar invested in fixed assets in 2024.

In 2023, the fixed asset turnover ratio was 6.75, indicating a decrease in efficiency in utilizing fixed assets to generate sales. However, in 2022, the ratio improved significantly to 18.58, showing a strong performance in efficiently generating sales from fixed assets.

The fixed asset turnover ratios of 22.32 in 2021 and 10.54 in 2020 also reflect efficient utilization of fixed assets to generate revenue in those respective years.

Overall, Kulicke and Soffa Industries Inc's fixed asset turnover ratio has shown variability over the past five years, with some years demonstrating better efficiency in utilizing fixed assets to drive sales compared to others. Further analysis of the underlying factors affecting fixed asset turnover could provide insights into the company's operational performance and asset management strategies.