Masimo Corporation (MASI)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	2,027,700	2,041,700	2,025,400	1,980,800	2,054,500	2,137,700	2,211,700	2,330,200	2,062,041	1,774,419	1,519,833	1,244,351	1,239,153	1,206,629	1,177,327	1,173,162	1,143,744	1,096,200	1,047,099	975,798
Property, plant and equipment	US$ in thousands	381,600	417,900	413,900	415,000	424,400	415,000	410,000	402,100	402,500	372,200	370,700	299,544	272,800	274,929	274,723	274,570	272,511	267,160	262,953	253,156
Fixed asset turnover		5.31	4.89	4.89	4.77	4.84	5.15	5.39	5.80	5.12	4.77	4.10	4.15	4.54	4.39	4.29	4.27	4.20	4.10	3.98	3.85

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,027,700K ÷ $381,600K
= 5.31

The fixed asset turnover ratio reflects Masimo Corporation's efficiency in generating revenue from its investment in fixed assets. From the data provided, we observe a fluctuating trend in the fixed asset turnover ratio over the analyzed periods.

The ratio has generally been on an upward trajectory from March 31, 2020, to December 31, 2023, peaking at 5.80 on March 31, 2023. This signifies that Masimo has been effectively utilizing its fixed assets to generate sales during these periods.

However, there was a decline in the fixed asset turnover ratio in the subsequent periods from March 31, 2023, to December 31, 2024, fluctuating around the range of 4.77 to 5.31. This may indicate changes in the company's operational efficiency in utilizing its fixed assets to generate revenue.

Overall, a high and increasing fixed asset turnover ratio is generally favorable as it signifies that Masimo is making efficient use of its fixed assets to drive sales. It is important for the company to closely monitor this ratio to ensure optimal utilization of its fixed assets and continued operational effectiveness.