Masimo Corporation (MASI)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,053,900	2,073,900	1,239,150	1,143,740	937,837
Property, plant and equipment	US$ in thousands	424,400	402,500	272,800	272,511	219,552
Fixed asset turnover		4.84	5.15	4.54	4.20	4.27

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,053,900K ÷ $424,400K
= 4.84

The fixed asset turnover ratio measures how efficiently Masimo Corporation is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio indicates a more efficient use of fixed assets.

From 2019 to 2023, Masimo Corporation's fixed asset turnover has ranged from 4.20 to 5.15, showing a consistent performance in efficiently generating sales from its fixed assets. The trend indicates that the company has been effectively utilizing its fixed assets to generate revenue over the years.

The slight fluctuations in the ratio over the years may be attributable to changes in the company's sales volume relative to its investment in fixed assets. Overall, Masimo Corporation's fixed asset turnover ratio demonstrates a strong and stable efficiency in generating sales from its fixed assets.