NXP Semiconductors NV (NXPI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,276,000 | 13,205,000 | 11,063,000 | 8,612,000 | 8,877,000 |
| Property, plant and equipment | US$ in thousands | 3,323,000 | 3,105,000 | 2,635,000 | 2,284,000 | 2,448,000 |
| Fixed asset turnover | 4.00 | 4.25 | 4.20 | 3.77 | 3.63 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $13,276,000K ÷ $3,323,000K
= 4.00
The fixed asset turnover ratio measures a company's efficiency in generating revenue from its investment in fixed assets. A higher fixed asset turnover indicates that the company is utilizing its fixed assets more effectively to generate sales.
Looking at the trend of NXP Semiconductors NV's fixed asset turnover over the past five years, we can observe that the ratio has generally been improving. The ratio increased from 3.63 in 2019 to 4.00 in 2023, with some fluctuations in between. This suggests that the company has been able to generate more revenue relative to its investment in fixed assets over the years.
The improvement in fixed asset turnover may indicate that NXP Semiconductors NV has been effectively managing its fixed assets to optimize their contribution to revenue generation. It could imply efficient utilization of assets, effective production processes, or successful sales and marketing strategies.
Overall, the increasing trend in fixed asset turnover for NXP Semiconductors NV reflects positively on the company's operational efficiency and suggests that it has been successful in leveraging its fixed assets to generate sales.
Peer comparison
Dec 31, 2023