Moderna Inc (MRNA)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	6,775,000	19,263,000	18,471,000	803,000	60,000
Property, plant and equipment	US$ in thousands	1,509,000	868,000	576,000	242,000	191,951
Fixed asset turnover		4.49	22.19	32.07	3.32	0.31

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,775,000K ÷ $1,509,000K
= 4.49

Fixed asset turnover measures how efficiently a company generates sales from its investments in fixed assets. In the case of Moderna Inc, the fixed asset turnover has shown considerable fluctuation over the past five years. In 2019, the ratio was at a low of 0.30, indicating that the company was generating $0.30 in revenue for every dollar invested in fixed assets. However, by 2021, the ratio had significantly improved to 14.88, suggesting that Moderna was able to generate $14.88 in revenue for every dollar invested in fixed assets, demonstrating a strong efficiency in asset utilization.

The ratio decreased in 2022 to 9.55 before decreasing significantly in 2023 to 3.52. This decline could indicate either a decrease in sales relative to fixed assets, an increase in fixed asset investments without proportionate sales growth, or a combination of both. It is crucial for investors and analysts to monitor this trend closely as it may signify inefficiencies in Moderna's asset management or changes in the company's business operations that could impact future financial performance. Overall, the trend in Moderna Inc's fixed asset turnover ratio highlights the importance of monitoring efficiency in asset utilization for sustainable growth and profitability.