Photronics Inc (PLAB)

Fixed asset turnover

		Oct 31, 2024	Jul 28, 2024	Apr 28, 2024	Jan 28, 2024	Oct 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 31, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 31, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020
Revenue (ttm)	US$ in thousands	869,022	894,616	899,226	907,395	894,050	874,282	878,280	850,609	851,526	816,396	771,044	716,233	674,649	638,551	618,137	603,369	609,691	616,661	596,878	585,684
Property, plant and equipment	US$ in thousands	745,257	722,638	729,489	742,671	709,244	701,459	699,917	710,927	643,873	640,805	659,881	692,289	696,553	699,609	717,426	672,398	631,475	623,247	604,545	619,935
Fixed asset turnover		1.17	1.24	1.23	1.22	1.26	1.25	1.25	1.20	1.32	1.27	1.17	1.03	0.97	0.91	0.86	0.90	0.97	0.99	0.99	0.94

October 31, 2024 calculation

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

Fixed asset turnover is a key financial ratio that indicates how efficiently a company is generating revenue from its fixed assets. In the case of Photronics Inc, the fixed asset turnover has fluctuated over the past few quarters, ranging from a low of 0.86 to a high of 1.32.

A fixed asset turnover ratio of less than 1 indicates that the company is not efficiently utilizing its fixed assets to generate revenue. In the earlier periods such as 2020 and early 2021, Photronics Inc had relatively low fixed asset turnover ratios, suggesting inefficiencies in asset utilization.

However, there has been an improvement in the fixed asset turnover ratio more recently, with values above 1 in the most recent quarters. This indicates that Photronics Inc has become more efficient in generating sales from its fixed assets. The trend towards higher fixed asset turnover ratios is generally positive as it implies that the company is making better use of its investments in fixed assets to drive revenue growth.

Overall, the increasing trend in the fixed asset turnover ratio for Photronics Inc suggests improving efficiency in asset utilization, which is a positive sign for the company's financial performance.