Insight Enterprises Inc (NSIT)
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 | 9,142,340 | 9,414,780 | 9,676,330 | 10,062,510 | 10,391,690 | 10,454,800 | 10,369,350 | 9,855,280 | 9,395,600 | 9,121,090 | 8,611,260 | 8,349,860 | 8,298,980 | 8,303,360 | 8,280,850 | 8,154,080 | 7,701,790 | 7,161,530 | 6,997,740 | 6,998,080 |
| Property, plant and equipment | US$ in thousands | 210,061 | 205,511 | 201,646 | 200,969 | 204,260 | 201,269 | 199,617 | 189,722 | 176,263 | 152,070 | 149,979 | 148,531 | 146,016 | 127,580 | 127,490 | 128,689 | 130,907 | 169,996 | 73,766 | 74,038 |
| Fixed asset turnover | 43.52 | 45.81 | 47.99 | 50.07 | 50.87 | 51.94 | 51.95 | 51.95 | 53.30 | 59.98 | 57.42 | 56.22 | 56.84 | 65.08 | 64.95 | 63.36 | 58.83 | 42.13 | 94.86 | 94.52 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $9,142,340K ÷ $210,061K
= 43.52
Insight Enterprises Inc.'s fixed asset turnover ratio has demonstrated a declining trend over the past eight quarters, from 52.15 in Q1 2022 to 43.68 in Q4 2023. This indicates that the company's ability to generate sales revenue from its fixed assets has decreased over time. A fixed asset turnover ratio below 1 suggests that the company may be inefficient in utilizing its fixed assets to generate sales.
The steady decline in the fixed asset turnover ratio may raise concerns about the company's asset utilization efficiency and operational performance. It is essential for the company to closely monitor and analyze the reasons behind this downward trend to identify potential areas for improvement.
Management should consider reviewing its asset management strategies, such as optimizing asset utilization, improving operational efficiency, and potentially reevaluating its fixed asset base. By enhancing the utilization of fixed assets, Insight Enterprises Inc. may be able to increase its revenue generated from these assets and improve its overall financial performance in the future.
Peer comparison
Dec 31, 2023