Lumentum Holdings Inc (LITE)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,717,800 | 1,732,500 | 1,644,500 | 1,674,700 | 1,603,300 |
| Property, plant and equipment | US$ in thousands | 572,500 | 489,500 | 360,500 | 361,100 | 380,600 |
| Fixed asset turnover | 4.75 | 3.54 | 4.56 | 4.64 | 4.21 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,717,800K ÷ $572,500K
= 4.75
Fixed asset turnover is an important financial ratio that indicates how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio suggests better utilization of fixed assets.
Analyzing the trend of Lumentum Holdings Inc's fixed asset turnover over the past five years, we observe fluctuations in the ratio. In 2020, the ratio stood at 4.21, slightly increasing to 4.64 in 2021 before dropping to 4.56 in 2022. However, there was a significant improvement in 2023 with the ratio reaching 3.54, and a further substantial increase in 2024 to 4.75, reflecting a positive trend in asset efficiency.
Despite the fluctuations, the company generally maintains a healthy level of fixed asset turnover. The increase in 2024 could indicate improved operational efficiency or better utilization of fixed assets to generate sales revenue. However, further analysis and comparison with industry benchmarks would provide more insights into the company's asset management effectiveness.
Peer comparison
Jun 30, 2024