Photronics Inc (PLAB)

Fixed asset turnover

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Revenue	US$ in thousands	869,022	894,116	851,354	674,648	609,090
Property, plant and equipment	US$ in thousands	745,257	709,244	643,873	696,553	631,475
Fixed asset turnover		1.17	1.26	1.32	0.97	0.96

October 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $869,022K ÷ $745,257K
= 1.17

Fixed asset turnover is a financial ratio that measures how efficiently a company generates sales revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.

Analyzing the fixed asset turnover ratio of Photronics Inc over the past five years reveals fluctuations in the company's efficiency in utilizing its fixed assets. In 2024, the fixed asset turnover ratio was 1.17, indicating that for every dollar of fixed assets, the company generated $1.17 in sales. This represented a decrease from the previous year, where the ratio was higher at 1.26.

In 2022, the fixed asset turnover ratio reached its peak at 1.32, demonstrating that Photronics Inc was able to generate more sales from its fixed assets compared to previous years. However, in 2021 and 2020, the ratio dropped to 0.97 and 0.96 respectively, suggesting a decrease in the company's efficiency in utilizing its fixed assets to generate sales during those years.

Overall, the trend in Photronics Inc's fixed asset turnover ratio indicates some fluctuations in the company's ability to generate sales from its fixed assets efficiently. Further analysis and comparison with industry benchmarks can provide additional insights into the company's operational efficiency and competitiveness within its industry.