MaxLinear Inc (MXL)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 693,263 | 1,120,250 | 892,398 | 478,596 | 317,180 |
| Property, plant and equipment | US$ in thousands | 66,431 | 79,018 | 60,924 | 39,470 | 16,613 |
| Fixed asset turnover | 10.44 | 14.18 | 14.65 | 12.13 | 19.09 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $693,263K ÷ $66,431K
= 10.44
The fixed asset turnover ratio measures how effectively a company utilizes its fixed assets to generate sales. MaxLinear Inc's fixed asset turnover has shown some fluctuation over the past five years. The ratio decreased from 19.09 in 2019 to 10.44 in 2023. This indicates a lower level of sales generated from fixed assets in 2023 compared to 2019.
The high fixed asset turnover ratios in 2019, 2021, and 2022 suggest that the company was effectively using its fixed assets to generate sales. However, the decrease in the ratio in 2023 may raise some concerns about the company's ability to efficiently utilize its fixed assets to drive revenue. Further analysis of the company's investment in fixed assets and its sales performance is warranted to understand the factors driving this fluctuation in the ratio.
Peer comparison
Dec 31, 2023