Materion Corporation (MTRN)
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 | 1,633,620 | 1,648,357 | 1,675,646 | 1,725,472 | 1,735,899 | 2,803,789 | 2,384,788 | 1,947,417 | 1,504,455 | 348,644 | 352,178 | 357,767 | 364,481 | 304,953 | 315,512 | 325,994 | 333,810 | 351,719 | 347,825 | 339,962 |
| Property, plant and equipment | US$ in thousands | 514,683 | 496,829 | 493,117 | 469,562 | 448,765 | 426,107 | 424,497 | 416,929 | 408,975 | 354,434 | 349,561 | 329,073 | 309,686 | 294,679 | 239,265 | 234,976 | 232,276 | 234,215 | 243,464 | 252,155 |
| Fixed asset turnover | 3.17 | 3.32 | 3.40 | 3.67 | 3.87 | 6.58 | 5.62 | 4.67 | 3.68 | 0.98 | 1.01 | 1.09 | 1.18 | 1.03 | 1.32 | 1.39 | 1.44 | 1.50 | 1.43 | 1.35 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,633,620K ÷ $514,683K
= 3.17
Materion Corp's fixed asset turnover ratio has shown a declining trend in recent quarters. The ratio decreased from 3.92 in Q4 2022 to 3.24 in Q4 2023, indicating that the company is generating less revenue per dollar of fixed assets invested. This may suggest inefficiencies in asset utilization or a decrease in sales relative to the level of fixed assets held by the company.
While the fixed asset turnover ratio improved slightly in Q3 and Q2 of 2023, reaching 3.38 and 3.46 respectively, it decreased again in Q1 2023 to 3.73. Overall, the declining trend in fixed asset turnover warrants further analysis to understand the underlying factors affecting the company's ability to generate revenue from its fixed asset base.
A fixed asset turnover ratio below industry averages or historical company performance levels may indicate the need for improved asset management or operational efficiency to enhance revenue generation from existing fixed assets. Further investigation into the reasons behind the fluctuating fixed asset turnover ratios is recommended for a more comprehensive evaluation of Materion Corp's financial performance and asset utilization.