Repligen Corporation (RGEN)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	624,137	668,700	728,189	776,656	800,374	797,146	771,730	724,184	657,807	583,191	499,203	423,845	351,528	312,354	282,284	266,775	258,269	240,737	227,641	204,754
Property, plant and equipment	US$ in thousands	207,440	201,618	202,564	192,692	190,673	174,255	168,370	147,627	124,964	99,652	85,491	72,243	66,870	55,355	52,451	50,373	48,455	43,034	38,125	34,526
Fixed asset turnover		3.01	3.32	3.59	4.03	4.20	4.57	4.58	4.91	5.26	5.85	5.84	5.87	5.26	5.64	5.38	5.30	5.33	5.59	5.97	5.93

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $624,137K ÷ $207,440K
= 3.01

Repligen Corp.'s fixed asset turnover ratio has shown a decreasing trend over the past quarters, as indicated by the downward movement in the figures from Q1 2022 to Q4 2023. This ratio measures the efficiency of the company in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio is generally preferred as it signifies that the company is effectively utilizing its fixed assets to generate sales.

The decline in the fixed asset turnover ratio of Repligen Corp. may suggest a decrease in the efficiency of the company in utilizing its fixed assets to generate sales revenue. It is important to further investigate the factors contributing to this trend, such as changes in sales volume, changes in the composition of fixed assets, or any other operational or strategic decisions impacting asset utilization.

Management should analyze the reasons behind the decreasing fixed asset turnover ratio and consider implementing measures to improve asset efficiency, such as optimizing asset utilization, reducing idle capacity, or investing in more productive assets. Regular monitoring of this ratio and identifying areas for improvement can help enhance the company's operational efficiency and profitability in the long run.