Sanmina Corporation (SANM)

Fixed asset turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	8,898,760	7,890,480	6,756,640	6,960,370	8,233,860
Property, plant and equipment	US$ in thousands	632,836	575,170	532,985	559,242	630,647
Fixed asset turnover		14.06	13.72	12.68	12.45	13.06

September 30, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,898,760K ÷ $632,836K
= 14.06

The fixed asset turnover ratio for Sanmina Corp has exhibited an increasing trend over the past five years, with a value of 14.12 for the fiscal year ending September 30, 2023, compared to 13.72 in the previous year. This indicates that the company generated $14.12 in net sales for every dollar invested in fixed assets, reflecting an efficient utilization of its long-term assets to generate revenue. The consistent improvement in this ratio suggests that Sanmina Corp has been effectively managing and utilizing its fixed assets to drive sales, potentially indicating improved operational efficiency and effective asset utilization. This may be a positive signal for investors and lenders, as it reflects the company's ability to generate higher sales relative to its investment in fixed assets.