Micron Technology Inc (MU)

Fixed asset turnover

		Aug 29, 2024	May 30, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	Jun 1, 2023	Mar 2, 2023	Dec 1, 2022	Sep 1, 2022	Jun 2, 2022	Mar 3, 2022	Dec 2, 2021	Sep 2, 2021	Jun 3, 2021	Mar 4, 2021	Dec 3, 2020	Sep 3, 2020	May 28, 2020	Feb 27, 2020	Nov 28, 2019
Revenue (ttm)	US$ in thousands	25,154,000	20,871,000	22,897,000	20,821,000	20,261,000	22,995,000	22,873,000	26,991,000	30,516,000	32,144,000	30,916,000	29,379,000	27,545,000	25,310,000	23,319,000	21,874,000	21,286,000	20,140,000	19,514,000	20,570,000
Property, plant and equipment	US$ in thousands	37,711,000	35,982,000	35,862,000	36,180,000	36,617,000	37,540,000	38,001,000	38,411,000	37,645,000	35,741,000	35,203,000	34,269,000	32,447,000	31,668,000	31,387,000	31,758,000	30,605,000	30,081,000	29,647,000	29,352,000
Fixed asset turnover		0.67	0.58	0.64	0.58	0.55	0.61	0.60	0.70	0.81	0.90	0.88	0.86	0.85	0.80	0.74	0.69	0.70	0.67	0.66	0.70

August 29, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $25,154,000K ÷ $37,711,000K
= 0.67

The fixed asset turnover ratio for Micron Technology Inc fluctuated over the past few quarters, ranging from 0.55 to 0.90. The ratio indicates the efficiency of the company in generating sales revenue from its investment in fixed assets.

In the most recent period, the fixed asset turnover ratio stood at 0.67, suggesting that for every dollar invested in fixed assets, the company generated $0.67 in sales. This indicates that Micron Technology Inc may have experienced challenges in efficiently utilizing its fixed assets to drive revenue growth.

It is important for the company to monitor and potentially improve its fixed asset turnover ratio to ensure that its investments in fixed assets are yielding sufficient returns. A higher fixed asset turnover ratio would indicate better efficiency in utilizing fixed assets to generate revenue.

Overall, the trend in Micron Technology Inc's fixed asset turnover ratio highlights the importance of effectively managing and optimizing the use of its fixed assets to enhance operational efficiency and overall financial performance.