Leslies Inc (LESL)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 1,385,770 | 1,531,880 | 1,299,340 |
| Property, plant and equipment | US$ in thousands | 90,285 | 78,087 | 70,335 |
| Fixed asset turnover | 15.35 | 19.62 | 18.47 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,385,770K ÷ $90,285K
= 15.35
Fixed asset turnover indicates how efficiently a company generates sales revenue from its investment in fixed assets. In the case of Leslies Inc, the trend of fixed asset turnover over the past three years shows a decrease from 19.62 in 2022 to 15.35 in 2023.
This decline in fixed asset turnover suggests that the company is generating fewer sales revenue in relation to its investment in fixed assets. It could indicate inefficiencies in asset utilization or potential over-investment in fixed assets relative to sales growth.
Although the current fixed asset turnover of 15.35 is still relatively high, it is essential for Leslies Inc to closely monitor this ratio to ensure optimal utilization of its fixed assets and improve operational efficiency in the future.
Peer comparison
Sep 30, 2023