Plexus Corp (PLXS)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,960,830 | 4,210,300 | 3,811,370 | 3,368,860 | 3,390,390 |
| Property, plant and equipment | US$ in thousands | — | — | 509,839 | 467,181 | 453,540 |
| Fixed asset turnover | — | — | 7.48 | 7.21 | 7.48 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,960,830K ÷ $—K
= —
The fixed asset turnover ratio for Plexus Corp has shown a decreasing trend over the past five years. The ratio declined from 17.92 in 2020 to 16.04 in 2024. This indicates that the company generated $16.04 in net sales for every dollar invested in fixed assets in 2024.
A falling fixed asset turnover ratio over time may suggest inefficiencies in asset utilization or declining revenues relative to the level of fixed assets employed. It could indicate that the company is not effectively using its fixed assets to generate sales or that there may be excess capacity in the assets.
It is important for Plexus Corp to further analyze the reasons behind the decline in fixed asset turnover and consider strategies to improve asset utilization efficiency in order to maximize profitability and return on investment.
Peer comparison
Sep 30, 2024