MaxLinear Inc (MXL)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 360,528 | 693,263 | 1,120,250 | 892,398 | 478,596 |
| Property, plant and equipment | US$ in thousands | 59,300 | 66,431 | 79,018 | 60,924 | 39,470 |
| Fixed asset turnover | 6.08 | 10.44 | 14.18 | 14.65 | 12.13 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $360,528K ÷ $59,300K
= 6.08
The fixed asset turnover ratio of MaxLinear Inc has shown fluctuations over the past five years. The ratio increased from 12.13 in December 2020 to 14.65 in December 2021, indicating that the company generated $14.65 in sales revenue for every dollar invested in fixed assets. However, in the following year, the ratio slightly decreased to 14.18 in December 2022.
There was a noticeable decline in the fixed asset turnover to 10.44 in December 2023, suggesting that the company's efficiency in utilizing its fixed assets to generate sales revenue decreased significantly. This drop could be a result of various factors such as underutilization of assets or a decline in sales relative to fixed asset investments.
Furthermore, the fixed asset turnover ratio continued to decrease to 6.08 in December 2024, indicating a further decline in the effectiveness of the company in generating sales from its fixed assets. It is important for MaxLinear Inc to closely monitor and analyze the reasons behind these fluctuations in the fixed asset turnover ratio to improve efficiency and optimize the utilization of its fixed assets in the future.
Peer comparison
Dec 31, 2024