MACOM Technology Solutions Holdings Inc (MTSI)

Fixed asset turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	729,578	679,243	637,279	625,451	648,407	676,175	699,912	695,653	675,169	652,237	632,600	618,036	606,920	598,958	583,603	559,444	530,037	495,036	466,075	468,116
Property, plant and equipment	US$ in thousands	176,017	178,975	180,229	184,278	149,496	155,376	123,266	118,945	123,701	122,498	122,426	120,773	120,526	119,137	114,253	115,953	118,866	122,000	125,765	129,979
Fixed asset turnover		4.14	3.80	3.54	3.39	4.34	4.35	5.68	5.85	5.46	5.32	5.17	5.12	5.04	5.03	5.11	4.82	4.46	4.06	3.71	3.60

September 30, 2024 calculation

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

The fixed asset turnover ratio of MACOM Technology Solutions Holdings Inc has shown some fluctuations over the past few quarters. The ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.

From December 2019 to March 2020, the fixed asset turnover ratio increased from 3.71 to 5.11, indicating that the company was able to generate more revenue per dollar invested in fixed assets during this period. However, the ratio declined in the following quarters, reaching a low of 3.39 in December 2023.

In general, a higher fixed asset turnover ratio is preferred as it signifies better efficiency in asset utilization. MACOM's ratio has typically been above 4, indicating that the company is efficiently using its fixed assets to generate sales revenue.

Investors and analysts should continue to monitor the fixed asset turnover ratio to assess the company's ability to generate revenue from its fixed assets efficiently and sustainably over time.