Merit Medical Systems Inc (MMSI)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,236,650	1,143,170	1,068,790	952,099	982,685
Property, plant and equipment	US$ in thousands	383,523	382,976	371,658	382,728	378,785
Fixed asset turnover		3.22	2.98	2.88	2.49	2.59

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,236,650K ÷ $383,523K
= 3.22

The fixed asset turnover of Merit Medical Systems, Inc. has shown a generally increasing trend over the past five years, indicating that the company is becoming more efficient in generating sales from its fixed assets.

In 2019, the fixed asset turnover ratio was 2.63, which means that for every dollar invested in fixed assets, the company generated $2.63 in sales. This ratio increased to 2.52 in 2020, showing some decrease in efficiency. However, from 2020 to 2023, there was a consistent increase in the ratio, growing to 3.28 by the end of 2023.

A higher fixed asset turnover ratio signifies that the company is utilizing its fixed assets effectively to generate sales revenue. This improvement in efficiency could be due to better asset management, increased productivity, or enhanced operational performance within the organization.

Overall, the increasing trend in fixed asset turnover ratio for Merit Medical Systems, Inc. suggests that the company has been successful in optimizing the utilization of its fixed assets to drive sales growth and potentially improve overall profitability.