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.