Matthews International Corporation (MATW)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,795,740 | 1,880,900 | 1,762,400 | 1,671,030 | 1,498,310 |
| Property, plant and equipment | US$ in thousands | 253,071 | 259,522 | 245,338 | 211,370 | 236,788 |
| Fixed asset turnover | 7.10 | 7.25 | 7.18 | 7.91 | 6.33 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,795,740K ÷ $253,071K
= 7.10
The fixed asset turnover ratio for Matthews International Corporation has been relatively stable over the past five years, ranging from 6.33 to 7.91. This ratio measures the ability of the company to generate revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is more efficient in utilizing its fixed assets to generate sales.
The slight fluctuations in the fixed asset turnover ratio over the years could be attributed to changes in sales revenue and the level of investment in fixed assets. Despite some variability, the company has maintained a consistently high fixed asset turnover ratio, reflecting its effective management of fixed assets to generate revenue. Overall, the trend suggests that Matthews International Corporation has been successful in efficiently utilizing its fixed assets to drive sales growth.