OSI Systems Inc (OSIS)

Fixed asset turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	1,533,660	1,280,430	1,211,210	1,145,600	1,162,640
Property, plant and equipment	US$ in thousands	113,967	108,933	109,684	118,004	127,936
Fixed asset turnover		13.46	11.75	11.04	9.71	9.09

June 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,533,660K ÷ $113,967K
= 13.46

Fixed asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its investment in fixed assets. OSI Systems Inc has shown a consistently increasing trend in fixed asset turnover over the past five years, indicating improved efficiency in utilizing its fixed assets to generate sales.

The fixed asset turnover ratio has grown from 9.09 in 2020 to 13.46 in 2024, indicating that the company is generating $13.46 in sales for every dollar invested in fixed assets in 2024. This suggests that OSI Systems Inc has been successful in maximizing the utilization of its fixed assets to drive revenue growth.

The increasing trend in fixed asset turnover over the years reflects positively on the company's operational efficiency and ability to generate revenue from its fixed asset base. This improvement may be attributed to effective asset management strategies or investments in technology and infrastructure that have enhanced productivity and sales generation capabilities. It demonstrates OSI Systems Inc's commitment to optimizing its fixed assets to support business operations and drive financial performance.