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.