Neurocrine Biosciences Inc (NBIX)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	2,355,300	2,241,400	2,117,000	1,978,200	1,882,900	1,779,300	1,668,300	1,522,900	1,411,600	1,306,100	1,208,800	1,185,500	1,107,700	1,050,200	1,010,800	1,022,200	1,020,900	1,017,010	981,066	862,604
Property, plant and equipment	US$ in thousands	82,600	80,000	80,100	75,300	70,800	68,800	65,600	62,800	58,600	60,900	66,800	63,900	58,600	51,100	50,000	45,300	44,600	43,000	44,600	41,900
Fixed asset turnover		28.51	28.02	26.43	26.27	26.59	25.86	25.43	24.25	24.09	21.45	18.10	18.55	18.90	20.55	20.22	22.57	22.89	23.65	22.00	20.59

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,355,300K ÷ $82,600K
= 28.51

The fixed asset turnover ratio measures a company's ability to generate revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more efficiently to generate sales.

Analyzing the fixed asset turnover ratio of Neurocrine Biosciences Inc over the period from March 31, 2020, to December 31, 2024, we observe that the ratio has shown a fluctuating trend. The ratio started at a high of 20.59 in March 2020 and reached its peak at 28.51 in December 2024, indicating an improvement in the company's ability to generate revenue from its fixed assets over the period.

However, there were fluctuations in between, suggesting potential inefficiencies in the utilization of fixed assets during certain periods. For example, there was a decline in the ratio from June 2021 to June 2022. The ratio decreased from 20.22 to 18.10 over this period, indicating a potential decrease in the company's ability to generate revenue from its fixed assets.

Overall, the general upward trend in the fixed asset turnover ratio indicates an improving efficiency in Neurocrine Biosciences Inc's utilization of fixed assets to generate sales over the analyzed period. However, it is essential for the company to continue monitoring and managing its fixed asset turnover to ensure optimal efficiency in asset utilization for sustainable growth and profitability.