OSI Systems Inc (OSIS)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019
Revenue (ttm)	US$ in thousands	1,538,758	1,464,019	1,361,502	1,283,864	1,272,725	1,200,950	1,188,538	1,169,622	1,180,808	1,174,471	1,167,781	1,167,109	1,142,760	1,087,192	1,096,288	1,125,621	1,161,565	1,175,951	1,187,352	1,185,215
Property, plant and equipment	US$ in thousands	113,967	110,399	110,188	109,174	108,933	109,139	107,763	107,976	109,684	112,755	116,115	116,814	118,004	125,477	127,875	127,705	127,936	128,518	129,588	128,293
Fixed asset turnover		13.50	13.26	12.36	11.76	11.68	11.00	11.03	10.83	10.77	10.42	10.06	9.99	9.68	8.66	8.57	8.81	9.08	9.15	9.16	9.24

June 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,538,758K ÷ $113,967K
= 13.50

The fixed asset turnover ratio for OSI Systems Inc has shown a consistent upward trend in recent periods, indicating an improvement in the company's efficiency in generating sales from its investment in fixed assets. The ratio has generally been increasing over the past few years, reaching 13.50 as of June 30, 2024, which suggests that the company is utilizing its fixed assets more effectively to drive revenue.

A high fixed asset turnover ratio indicates that OSI Systems Inc is effectively using its fixed assets to generate sales. This can be a positive sign for investors, as it demonstrates that the company is efficiently managing its resources and maximizing the return on its investments in property, plant, and equipment.

However, it is important to note that a very high fixed asset turnover ratio may also indicate that the company is operating with a low level of fixed assets relative to its sales, which could potentially signal inefficiencies in its asset base. Therefore, further analysis and comparison with industry peers would be necessary to provide a more comprehensive assessment of OSI Systems Inc's performance in this area.