Mettler-Toledo International Inc (MTD)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,788,310	3,919,710	3,717,930	3,085,180	3,008,650
Property, plant and equipment	US$ in thousands	803,374	778,600	799,365	798,868	748,657
Fixed asset turnover		4.72	5.03	4.65	3.86	4.02

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,788,310K ÷ $803,374K
= 4.72

The fixed asset turnover ratio for Mettler-Toledo International, Inc. has shown some fluctuations over the past five years. The ratio indicates how efficiently the company generates revenue from its investment in fixed assets. A higher ratio generally suggests better asset utilization.

In 2023, the fixed asset turnover ratio decreased to 4.72 from 5.03 in 2022. This slight decline could indicate that the company was less efficient in generating sales from its fixed assets in 2023 compared to the previous year. However, the ratio still remains relatively high, indicating that the company is effectively utilizing its fixed assets to generate revenue.

Comparing the 2023 ratio to previous years, it is higher than the ratios in 2021 (4.65) and 2020 (3.86) but lower than the ratio in 2019 (4.02). This suggests that the company has generally improved its efficiency in generating sales from fixed assets over the past five years.

Overall, while there was a slight decrease in the fixed asset turnover ratio in 2023, Mettler-Toledo International, Inc. has shown a trend of relatively efficient utilization of its fixed assets to generate revenue over the past five years. Continued monitoring of this ratio will be important to assess the company's ongoing operational efficiency.