MaxLinear Inc (MXL)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	693,263	858,496	1,008,696	1,104,767	1,120,252	1,077,555	1,021,599	946,966	892,398	839,225	766,084	625,928	478,596	353,898	277,285	294,572	317,180	334,789	339,779	358,805
Property, plant and equipment	US$ in thousands	66,431	69,484	73,845	77,691	79,018	67,081	64,136	60,022	60,924	53,022	48,104	40,787	39,470	37,258	18,059	15,751	16,613	15,204	15,738	16,987
Fixed asset turnover		10.44	12.36	13.66	14.22	14.18	16.06	15.93	15.78	14.65	15.83	15.93	15.35	12.13	9.50	15.35	18.70	19.09	22.02	21.59	21.12

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $693,263K ÷ $66,431K
= 10.44

The fixed asset turnover ratio measures the efficiency of a company in generating sales revenue from its investment in fixed assets, such as property, plant, and equipment. A higher ratio indicates better utilization of fixed assets to generate sales.

Based on the data provided for MaxLinear Inc, the fixed asset turnover ratio has shown a generally increasing trend over the past eight quarters, from 10.44 in December 2022 to 14.22 in March 2023. This indicates improving efficiency in generating sales from the company's fixed assets during this period.

The peak value of 14.22 in March 2023 suggests that, for every dollar invested in fixed assets, the company generated approximately $14.22 in sales revenue. This indicates a strong utilization of fixed assets to drive sales and reflects positively on the company's operational efficiency.

Overall, the increasing trend in the fixed asset turnover ratio reflects positively on MaxLinear Inc's ability to efficiently utilize its fixed assets in generating sales revenue, which is a key indicator of operational effectiveness.