Mettler-Toledo International Inc (MTD)

Fixed asset turnover

		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	Mar 31, 2019
Revenue (ttm)	US$ in thousands	3,788,309	3,910,997	3,954,381	3,950,651	3,919,704	3,899,264	3,865,368	3,811,332	3,717,931	3,618,676	3,474,083	3,240,405	3,085,177	2,991,160	2,937,669	2,978,362	3,008,652	2,982,607	2,963,587	2,954,217
Property, plant and equipment	US$ in thousands	803,374	763,209	780,723	780,013	778,600	728,602	760,856	787,472	799,365	783,813	790,512	780,166	798,868	758,010	743,393	742,651	748,657	722,592	728,007	722,926
Fixed asset turnover		4.72	5.12	5.07	5.06	5.03	5.35	5.08	4.84	4.65	4.62	4.39	4.15	3.86	3.95	3.95	4.01	4.02	4.13	4.07	4.09

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,788,309K ÷ $803,374K
= 4.72

The fixed asset turnover ratio for Mettler-Toledo International, Inc. has shown a relatively stable trend over the past eight quarters. The company's fixed asset turnover ratio ranged from 4.72 to 5.35 during this period.

A high fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales. Mettler-Toledo's ratios above 5 suggest that the company is efficient in generating revenues from its investment in fixed assets.

The slight fluctuations in the ratio over the quarters may indicate variations in production levels or changes in the asset base. However, the overall consistency at a relatively high level indicates the company's consistent operational efficiency in utilizing its fixed assets to drive sales.

Investors and stakeholders may view the high and stable fixed asset turnover ratio as a positive indicator of the company's operational efficiency and effective asset management. It showcases Mettler-Toledo International's ability to generate sales revenue relative to its investment in fixed assets, which is crucial for sustaining growth and profitability in the long term.