Liquidity Services Inc (LQDT)

Fixed asset turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	367,205	317,498	280,423	258,046	207,151
Property, plant and equipment	US$ in thousands	17,961	17,156	19,094	17,634	17,843
Fixed asset turnover		20.44	18.51	14.69	14.63	11.61

September 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $367,205K ÷ $17,961K
= 20.44

Liquidity Services Inc's fixed asset turnover ratio has shown a positive trend over the past five years, indicating the company's ability to generate sales revenue from its investment in fixed assets. The ratio has increased from 11.61 in 2020 to 20.44 in 2024, reflecting an improving efficiency in utilizing its fixed assets to generate sales.

This upward trend suggests that the company has been able to efficiently manage and utilize its fixed assets to drive revenue growth. A higher fixed asset turnover ratio indicates that the company is producing more sales relative to its investment in fixed assets, which is a positive signal for investors and creditors.

Overall, the steady increase in Liquidity Services Inc's fixed asset turnover ratio demonstrates improved efficiency in utilizing its fixed assets to generate sales revenue, showcasing the company's operational effectiveness and financial health over the years.