Leslies Inc (LESL)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,378,163 | 1,403,018 | 1,453,814 | 1,527,384 | 1,535,663 | 1,531,880 | 1,467,427 | 1,389,785 | 1,351,089 | 1,299,337 | |||
| Property, plant and equipment | US$ in thousands | 92,405 | 90,285 | 85,396 | 80,612 | 75,049 | 78,087 | 71,653 | 70,547 | 65,883 | 70,335 | 66,363 | 63,632 | 62,628 |
| Fixed asset turnover | 14.91 | 15.54 | 17.02 | 18.95 | 20.46 | 19.62 | 20.48 | 19.70 | 20.51 | 18.47 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,378,163K ÷ $92,405K
= 14.91
Leslies Inc's fixed asset turnover has shown a decreasing trend over the past four quarters. The ratio decreased from 20.51 in March 2022 to 14.91 in December 2023. This indicates that the company generated less revenue from its fixed assets in December 2023 compared to March 2022.
However, despite the decreasing trend, Leslies Inc's fixed asset turnover remains relatively high, indicating that the company is efficient in generating sales revenue from its fixed assets. A higher fixed asset turnover ratio is generally favorable, as it indicates that the company is utilizing its fixed assets effectively to generate sales.
It would be beneficial for Leslies Inc to closely monitor its fixed asset turnover ratio and assess whether the decrease is due to declining sales or inefficient use of fixed assets. By addressing any inefficiencies, the company can potentially improve its overall financial performance and profitability.
Peer comparison
Dec 31, 2023