Envista Holdings Corp (NVST)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,494,900 | 2,534,300 | 2,549,200 | 2,561,100 | 2,560,900 | 2,546,100 | 2,549,700 | 2,544,100 | 2,565,100 | 2,583,600 | 2,571,400 | 2,569,200 | 2,550,300 | 2,514,600 | 2,547,800 | 2,272,600 | 2,207,200 | 2,270,200 |
| Property, plant and equipment | US$ in thousands | 277,000 | 291,500 | 290,800 | 306,200 | 309,600 | 304,000 | 300,100 | 297,600 | 293,600 | 277,200 | 264,100 | 264,200 | 264,100 | 266,100 | 303,900 | 295,700 | 274,600 | 296,800 |
| Fixed asset turnover | 9.01 | 8.69 | 8.77 | 8.36 | 8.27 | 8.38 | 8.50 | 8.55 | 8.74 | 9.32 | 9.74 | 9.72 | 9.66 | 9.45 | 8.38 | 7.69 | 8.04 | 7.65 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,494,900K ÷ $277,000K
= 9.01
Fixed asset turnover is a financial ratio that measures how efficiently a company generates sales revenue from its fixed assets. The ratio is calculated by dividing net sales by average fixed assets.
Analyzing the fixed asset turnover of Envista Holdings Corp from September 2020 to December 2024 reveals a fluctuating trend. The ratio started at 7.65 in September 2020, increased steadily to reach a peak of 9.74 in June 2022, and then gradually decreased to 8.69 by September 2024.
A higher fixed asset turnover indicates that the company is utilizing its fixed assets effectively to generate sales. In the case of Envista Holdings Corp, the increasing trend in the ratio from 2020 to 2022 suggests improved efficiency in utilizing fixed assets. However, the subsequent decline in the ratio after 2022 may indicate a slowdown in this efficiency.
It is important for management to closely monitor the fixed asset turnover ratio and implement strategies to optimize the utilization of fixed assets to ensure optimal revenue generation and profitability.
Peer comparison
Dec 31, 2024