LCI Industries (LCII)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	3,784,809	3,841,611	4,014,376	4,535,886	5,207,146	5,526,210	5,559,440	5,117,010	4,472,700	4,042,292	3,704,711	3,136,756	2,796,166	2,577,185	2,335,677	2,438,980	2,371,482	2,344,077	2,362,100	2,417,487
Property, plant and equipment	US$ in thousands	465,781	472,518	478,885	480,904	482,185	470,571	456,517	450,095	426,455	421,053	408,693	392,713	387,218	368,422	364,957	372,113	366,309	343,883	339,613	335,049
Fixed asset turnover		8.13	8.13	8.38	9.43	10.80	11.74	12.18	11.37	10.49	9.60	9.06	7.99	7.22	7.00	6.40	6.55	6.47	6.82	6.96	7.22

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,784,809K ÷ $465,781K
= 8.13

The fixed asset turnover of LCI Industries has shown a decreasing trend over the quarters, with the ratio declining from 12.18 in Q2 2022 to 8.13 in Q4 2023. This indicates that the company's ability to generate sales from its fixed assets has weakened. A high fixed asset turnover ratio is generally desirable as it suggests that the company is efficiently utilizing its fixed assets to generate revenue. The declining trend in fixed asset turnover may raise concerns about the company's asset utilization efficiency and effectiveness in generating sales. Further analysis and investigation into the factors affecting this trend may be necessary to identify potential areas for improvement.