MACOM Technology Solutions Holdings Inc (MTSI)

Fixed asset turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	729,578	648,407	675,170	606,920	530,037
Property, plant and equipment	US$ in thousands	176,017	149,496	123,701	120,526	118,866
Fixed asset turnover		4.14	4.34	5.46	5.04	4.46

September 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $729,578K ÷ $176,017K
= 4.14

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. It indicates the amount of revenue generated for each dollar of fixed assets.

MACOM Technology Solutions Holdings Inc's fixed asset turnover has fluctuated over the past five years. In 2022 and 2021, the company achieved relatively high fixed asset turnover ratios of 5.46 and 5.04, respectively, indicating efficient utilization of fixed assets to generate revenue during those years. This suggests that the company was able to generate $5.46 and $5.04 in revenue for every dollar of fixed assets it owned.

However, in 2024, the fixed asset turnover decreased to 4.14, which could suggest a slightly lower efficiency in utilizing fixed assets to generate revenue compared to the previous years. Despite this decline, the company is still generating $4.14 in revenue for each dollar invested in fixed assets.

Overall, MACOM Technology Solutions Holdings Inc has demonstrated a generally solid performance in terms of fixed asset turnover, with some fluctuations in efficiency over the past five years. The management may need to focus on optimizing the utilization of fixed assets to maintain or improve the efficiency of revenue generation in the future.