Mercury Systems Inc (MRCY)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 835,275 | 973,882 | 988,197 | 923,996 | 796,610 |
| Property, plant and equipment | US$ in thousands | 110,353 | 119,554 | 127,191 | 128,524 | 87,737 |
| Fixed asset turnover | 7.57 | 8.15 | 7.77 | 7.19 | 9.08 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $835,275K ÷ $110,353K
= 7.57
Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more efficiently to generate sales.
Analyzing the fixed asset turnover trend of Mercury Systems Inc over the past five years, we can see a fluctuating pattern. In 2020, the fixed asset turnover was the highest at 9.08, indicating that the company generated $9.08 in sales for every $1 invested in fixed assets. However, in the following years, the ratio decreased but remained relatively high, with values of 7.19 in 2021, 7.77 in 2022, 8.15 in 2023, and 7.57 in 2024.
Overall, Mercury Systems Inc has maintained a strong fixed asset turnover ratio, which suggests efficient utilization of its fixed assets to generate revenue. While there has been some variability in the ratio over the years, the company appears to be effectively managing and leveraging its fixed assets to drive sales growth. Further analysis and comparison with industry benchmarks could provide additional insights into the company's operational efficiency and performance.
Peer comparison
Jun 30, 2024