Leidos Holdings Inc (LDOS)
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 | 15,438,000 | 15,155,000 | 14,842,000 | 14,601,000 | 14,396,000 | 14,190,000 | 14,065,000 | 13,916,000 | 13,737,000 | 13,498,000 | 13,257,000 | 12,723,000 | 12,297,000 | 11,999,000 | 11,592,000 | 11,406,000 | 11,094,000 | 10,787,000 | 10,527,000 | 10,293,000 |
| Property, plant and equipment | US$ in thousands | 872,000 | 935,000 | 928,000 | 922,000 | 804,000 | 671,000 | 669,000 | 674,000 | 670,000 | 662,000 | 654,000 | 655,000 | 604,000 | 577,000 | 569,000 | 490,000 | 287,000 | 228,000 | 216,000 | 220,000 |
| Fixed asset turnover | 17.70 | 16.21 | 15.99 | 15.84 | 17.91 | 21.15 | 21.02 | 20.65 | 20.50 | 20.39 | 20.27 | 19.42 | 20.36 | 20.80 | 20.37 | 23.28 | 38.66 | 47.31 | 48.74 | 46.79 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,438,000K ÷ $872,000K
= 17.70
Leidos Holdings Inc has exhibited a relatively consistent performance in terms of fixed asset turnover over the past few quarters. The fixed asset turnover ratio measures how efficiently the company generates sales revenue from its investment in fixed assets.
From the data provided, we can observe a downward trend in the fixed asset turnover ratio since December 2019, with a peak of 48.74 in March 2019 and a low of 15.84 in March 2023. This decline indicates that Leidos Holdings Inc may be experiencing challenges in utilizing its fixed assets to generate revenue efficiently.
It is noteworthy that the fixed asset turnover ratio has been above 15 for the most recent quarters, which suggests that the company is still effectively leveraging its fixed assets to generate sales. However, the decreasing trend over time warrants further analysis to understand the underlying reasons behind this decline and to identify potential areas for improvement in asset utilization.
Overall, while Leidos Holdings Inc has maintained a relatively high fixed asset turnover compared to some earlier periods, monitoring this ratio closely and implementing strategic measures to enhance asset efficiency could help the company sustain or improve its operational performance in the future.
Peer comparison
Dec 31, 2023