Photronics Inc (PLAB)

Fixed asset turnover

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Revenue	US$ in thousands	894,116	851,354	674,648	609,090	549,360
Property, plant and equipment	US$ in thousands	709,244	643,873	696,553	631,475	632,441
Fixed asset turnover		1.26	1.32	0.97	0.96	0.87

October 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $894,116K ÷ $709,244K
= 1.26

The fixed asset turnover ratio for Photronics, Inc. has shown fluctuations over the past five years. The ratio was 1.26 in 2023, a slight decrease from 1.28 in 2022. This indicates that the company generated $1.26 in sales for every dollar invested in fixed assets in 2023. The trend over the past five years shows an improvement from 2019 to 2021, with the ratio increasing from 0.87 to 0.95, before experiencing a slight drop in 2022 and 2023.

The decrease in the fixed asset turnover ratio may suggest that the company's sales growth has not kept pace with the investment in fixed assets, indicating a potential inefficiency in asset utilization or a decrease in productivity. It would be important to further investigate the reasons behind this trend and assess the company's capital investment strategies and operational efficiency to determine the factors impacting the fixed asset turnover.