Leidos Holdings Inc (LDOS)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	16,510,000	16,066,000	15,714,000	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
Property, plant and equipment	US$ in thousands	922,000	992,000	972,000	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
Fixed asset turnover		17.91	16.20	16.17	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

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $16,510,000K ÷ $922,000K
= 17.91

The fixed asset turnover ratio for Leidos Holdings Inc has shown a general decreasing trend over the years, indicating a declining efficiency in generating revenue from its fixed assets. The ratio decreased from a peak of 38.66 at December 31, 2019, to 17.91 at December 31, 2024. Despite some fluctuations during the period, the trend overall highlights a decrease in the company's ability to utilize its fixed assets effectively to generate sales.

It is important to note that a decreasing fixed asset turnover ratio may suggest that the company is not efficiently utilizing its fixed assets to generate revenue, which could potentially indicate issues with asset management or operational efficiency. Further analysis and comparison with industry benchmarks would be necessary to better understand the implications of this decreasing trend on the company's overall financial performance and competitiveness in the market.