Littelfuse Inc (LFUS)
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 | 2,318,462 | 2,418,117 | 2,465,213 | 2,461,812 | 2,463,322 | 2,383,122 | 2,282,657 | 2,203,251 | 2,044,243 | 1,905,343 | 1,766,270 | 1,553,224 | 1,439,034 | 1,376,861 | 1,335,553 | 1,423,926 | 1,481,403 | 1,545,161 | 1,626,151 | 1,680,487 |
| Property, plant and equipment | US$ in thousands | 493,153 | 478,906 | 481,567 | 492,368 | 481,110 | 458,234 | 435,683 | 442,022 | 437,889 | 364,329 | 352,826 | 344,914 | 344,178 | 339,870 | 334,677 | 334,829 | 344,617 | 329,792 | 338,500 | 342,334 |
| Fixed asset turnover | 4.70 | 5.05 | 5.12 | 5.00 | 5.12 | 5.20 | 5.24 | 4.98 | 4.67 | 5.23 | 5.01 | 4.50 | 4.18 | 4.05 | 3.99 | 4.25 | 4.30 | 4.69 | 4.80 | 4.91 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,318,462K ÷ $493,153K
= 4.70
The fixed asset turnover ratio measures how efficiently a company is generating revenue from its investment in fixed assets. Littelfuse Inc's fixed asset turnover ratio fluctuated over the period analyzed, ranging from a low of 3.99 to a high of 5.24. This indicates that the company, on average, generated between $3.99 and $5.24 in revenue for every dollar invested in fixed assets during the respective periods.
A consistently high fixed asset turnover ratio, such as those above 5, suggests that Littelfuse Inc is effectively utilizing its fixed assets to generate sales. This could be a result of effective asset management, optimal capacity utilization, and strong operational efficiency.
However, the fluctuation in the fixed asset turnover ratio over the periods may suggest changes in the company's operations, investment strategies, or industry conditions. For instance, a lower ratio in some quarters could indicate a decrease in sales relative to the investment in fixed assets, or a build-up of assets without a corresponding increase in revenue.
In assessing Littelfuse Inc's fixed asset turnover, it is essential to consider the company's industry dynamics, business cycles, and specific strategies that may impact the utilization of fixed assets. Overall, the trend of the fixed asset turnover ratio should be monitored to gauge how effectively Littelfuse Inc is managing its fixed asset base to drive sales and profitability.
Peer comparison
Dec 31, 2023