Impinj Inc (PI)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 366,087 | 302,856 | 254,853 | 189,633 | 135,412 |
| Property, plant and equipment | US$ in thousands | 50,610 | 44,891 | 39,027 | 27,500 | 16,531 |
| Fixed asset turnover | 7.23 | 6.75 | 6.53 | 6.90 | 8.19 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $366,087K ÷ $50,610K
= 7.23
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales revenue. Looking at the data provided for Impinj Inc, we observe a trend of declining fixed asset turnover over the years.
At the end of December 31, 2020, the fixed asset turnover ratio stood at 8.19, indicating that the company generated $8.19 in sales for every dollar invested in fixed assets during that period. However, this ratio decreased to 6.90 by December 31, 2021, suggesting a less efficient utilization of fixed assets to generate revenue.
The trend continued with the fixed asset turnover further decreasing to 6.53 by December 31, 2022. Despite a slight improvement to 6.75 by December 31, 2023, the ratio remained below the initial benchmark. Notably, by December 31, 2024, the fixed asset turnover ratio increased to 7.23, reflecting a partial recovery in asset efficiency.
Overall, the declining trend in fixed asset turnover indicates a potential inefficiency in utilizing fixed assets to generate sales revenue during the specified period. Management may need to investigate the reasons behind this trend and take corrective actions to improve the company's asset utilization efficiency.
Peer comparison
Dec 31, 2024