Sanmina Corporation (SANM)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,568,330 | 8,898,760 | 7,890,480 | 6,756,640 | 6,960,370 |
| Property, plant and equipment | US$ in thousands | 616,067 | 632,836 | 575,170 | 532,985 | 559,242 |
| Fixed asset turnover | 12.28 | 14.06 | 13.72 | 12.68 | 12.45 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,568,330K ÷ $616,067K
= 12.28
The fixed asset turnover ratio of Sanmina Corporation has shown a declining trend over the past five years. In Sep 2020, the ratio was 12.45, which increased to 12.68 in Sep 2021 before starting to decrease again to 13.72 in Sep 2022 and further to 14.06 in Sep 2023. However, in the most recent period ending in Sep 2024, the fixed asset turnover ratio dropped to 12.28.
This indicates that, on average, Sanmina Corporation generated $12.28 in revenue for every dollar invested in fixed assets during the most recent period. The decreasing trend in fixed asset turnover could suggest inefficiencies in utilizing fixed assets to generate revenue. It is essential for the company to monitor and manage its fixed asset turnover effectively to ensure optimal utilization of assets and improve financial performance.
Peer comparison
Sep 30, 2024