Neurocrine Biosciences Inc (NBIX)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,883,200	1,411,600	1,107,700	994,700	756,124
Property, plant and equipment	US$ in thousands	70,800	58,600	58,600	44,600	41,900
Fixed asset turnover		26.60	24.09	18.90	22.30	18.05

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,883,200K ÷ $70,800K
= 26.60

Neurocrine Biosciences, Inc. has shown a consistent improvement in its fixed asset turnover ratio over the past five years. The fixed asset turnover ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue.

The upward trend in Neurocrine Biosciences' fixed asset turnover from 2019 to 2023, with a significant increase from 18.80 in 2019 to 26.65 in 2023, suggests that the company has become more efficient in generating revenue from its fixed assets over time. This is a positive sign as it indicates improved productivity and effective utilization of the company's investments in property, plant, and equipment.

The high fixed asset turnover ratios in recent years indicate that the company is making better use of its fixed assets to generate sales, which can lead to higher profitability and return on investment. Overall, the increasing trend in Neurocrine Biosciences' fixed asset turnover ratio reflects positively on the company's operational efficiency and asset management.