Leslies Inc (LESL)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,330,120 | 1,385,770 | 1,531,880 | 1,299,340 |
| Property, plant and equipment | US$ in thousands | 98,447 | 90,285 | 78,087 | 70,335 |
| Fixed asset turnover | 13.51 | 15.35 | 19.62 | 18.47 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,330,120K ÷ $98,447K
= 13.51
The fixed asset turnover ratio for Leslies Inc has shown a declining trend over the past four years. In 2021, the ratio was 18.47, but it decreased to 19.62 in 2022, further dropping to 15.35 in 2023, and most recently to 13.51 in 2024.
A decreasing fixed asset turnover ratio could indicate that the company is not efficiently utilizing its fixed assets to generate sales. This may be a concern as it suggests that the company is not generating enough revenue relative to its investment in fixed assets.
Management should assess the reasons behind this decline and consider strategies to improve the efficiency of asset utilization, such as investing in more productive assets, improving operational processes, or increasing sales. Regular monitoring and analysis of the fixed asset turnover ratio can help management make informed decisions to optimize asset utilization and improve overall financial performance.
Peer comparison
Sep 30, 2024