Leidos Holdings Inc (LDOS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,438,000 | 14,396,000 | 13,737,000 | 12,297,000 | 11,094,000 |
| Property, plant and equipment | US$ in thousands | 872,000 | 804,000 | 670,000 | 604,000 | 287,000 |
| Fixed asset turnover | 17.70 | 17.91 | 20.50 | 20.36 | 38.66 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $15,438,000K ÷ $872,000K
= 17.70
The fixed asset turnover ratio for Leidos Holdings Inc has shown a declining trend over the past five years. From 2019 to 2023, the ratio decreased from 38.66 to 17.70. This indicates that the company generated $17.70 in revenue for every dollar invested in fixed assets in 2023, compared to $38.66 in 2019.
The decreasing trend in fixed asset turnover could suggest that the company's fixed assets are not being utilized as efficiently to generate sales. It could be due to various factors such as over-investment in fixed assets, underutilization of existing assets, or declining sales relative to fixed assets.
A declining fixed asset turnover ratio may also indicate potential inefficiencies in the company's operations or asset management strategies. It is important for Leidos Holdings Inc to analyze the reasons behind this trend and take corrective actions to improve the utilization of its fixed assets and enhance operational efficiency.
Peer comparison
Dec 31, 2023