Masimo Corporation (MASI)
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 | 2,047,100 | 2,130,300 | 2,204,300 | 2,322,800 | 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 | 937,837 | 913,459 | 895,031 | 877,000 |
| Property, plant and equipment | US$ in thousands | 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 | 219,552 | 209,458 | 202,810 | 167,288 |
| Fixed asset turnover | 4.82 | 5.13 | 5.38 | 5.78 | 5.12 | 4.77 | 4.10 | 4.15 | 4.54 | 4.39 | 4.29 | 4.27 | 4.20 | 4.10 | 3.98 | 3.85 | 4.27 | 4.36 | 4.41 | 5.24 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,047,100K ÷ $424,400K
= 4.82
The fixed asset turnover ratio for Masimo Corporation has shown fluctuating trends over the past few quarters. The ratio measures how efficiently the company is generating revenue from its investment in fixed assets.
From December 2019 to September 2020, the ratio saw a gradual increase from 4.27 to 4.54, indicating an improving efficiency in utilizing fixed assets to generate sales. However, from September 2020 to June 2021, there was a slight decline in the ratio, suggesting a potential decrease in the effectiveness of the company's fixed asset utilization.
From June 2021 to March 2023, there was a noticeable increase in the fixed asset turnover ratio, peaking at 5.78 in March 2023. This indicates that Masimo Corporation was able to generate higher revenue relative to its investment in fixed assets during this period.
It is important to note that a higher fixed asset turnover ratio generally signifies better efficiency in asset utilization, as the company is able to generate more revenue from its fixed assets. However, a very high ratio could also indicate potential underinvestment in fixed assets, which may affect the company's capacity for future growth and development.
Overall, analyzing the fixed asset turnover ratio for Masimo Corporation provides insights into its operational efficiency and effectiveness in generating revenue from its fixed assets.
Peer comparison
Dec 31, 2023