Microchip Technology Inc (MCHP)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Revenue (ttm)	US$ in thousands	7,634,400	8,541,300	8,944,800	8,763,700	8,438,700	8,050,200	7,638,500	7,215,100	6,820,900	6,443,800	6,038,400	5,698,100	5,438,400	5,297,700	5,233,000	5,261,300	5,274,200	5,277,600	5,364,900	5,459,600
Property, plant and equipment	US$ in thousands	1,194,600	1,208,300	1,206,900	1,185,700	1,177,900	1,113,700	1,088,300	994,900	967,900	929,900	923,700	892,200	854,700	827,400	822,100	844,000	876,100	909,700	937,000	963,000
Fixed asset turnover		6.39	7.07	7.41	7.39	7.16	7.23	7.02	7.25	7.05	6.93	6.54	6.39	6.36	6.40	6.37	6.23	6.02	5.80	5.73	5.67

March 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,634,400K ÷ $1,194,600K
= 6.39

The fixed asset turnover ratio for Microchip Technology Inc has shown relatively stable performance over the past few quarters, ranging from 5.67 to 7.41. This indicates that the company is effectively utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio suggests that the company is efficient in generating sales using its fixed assets.

The trend of the fixed asset turnover ratio over the quarters shows consistency and efficiency in managing and utilizing the company's fixed assets to drive sales. However, it is important to note that other factors, such as industry trends and economic conditions, can also influence the ratio.

Overall, the consistent and relatively high fixed asset turnover ratio for Microchip Technology Inc reflects efficient asset management, which is a positive indicator of the company's operational efficiency and effectiveness in generating revenue from its fixed assets.