Micron Technology Inc (MU)
Fixed asset turnover
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 25,170,000 | 15,206,000 | 30,527,000 | 27,545,000 | 21,284,000 |
| Property, plant and equipment | US$ in thousands | 37,711,000 | 36,617,000 | 37,645,000 | 32,447,000 | 30,605,000 |
| Fixed asset turnover | 0.67 | 0.42 | 0.81 | 0.85 | 0.70 |
August 29, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $25,170,000K ÷ $37,711,000K
= 0.67
The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. A higher ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.
Looking at the trend in Micron Technology Inc's fixed asset turnover ratio over the last five years, we observe fluctuations in the ratio. In particular:
- The ratio decreased from 0.70 in 2020 to 0.42 in 2023, indicating a decline in the efficiency of generating revenue from fixed assets during this period.
- However, there was a significant improvement in 2022 with a ratio of 0.81, suggesting better utilization of fixed assets to generate sales.
- The ratio slightly increased to 0.85 in 2021 before declining again to 0.67 in 2024.
Overall, the trend in fixed asset turnover for Micron Technology Inc shows some variability over the years, with periods of both improvement and decline in asset utilization efficiency. It would be important to further investigate the reasons behind these fluctuations to understand the company's asset management strategies and their impact on revenue generation.
Peer comparison
Aug 29, 2024