Sanmina Corporation (SANM)

Fixed asset turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	7,551,700	7,577,960	7,933,580	8,418,020	8,904,310	9,085,410	8,906,110	8,514,240	7,922,760	7,348,510	6,984,030	6,759,880	6,753,930	6,978,280	6,979,700	6,875,450	6,960,370	6,977,620	7,349,930	7,886,020
Property, plant and equipment	US$ in thousands	616,067	630,254	641,008	634,912	632,836	631,744	616,998	591,155	575,170	545,673	525,362	525,159	532,985	550,038	515,203	526,645	559,242	574,799	591,738	612,214
Fixed asset turnover		12.26	12.02	12.38	13.26	14.07	14.38	14.43	14.40	13.77	13.47	13.29	12.87	12.67	12.69	13.55	13.06	12.45	12.14	12.42	12.88

September 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,551,700K ÷ $616,067K
= 12.26

The fixed asset turnover ratio for Sanmina Corporation has been relatively stable over the past two years, ranging between 12.02 and 14.43. This indicates that the company is generating revenue efficiently from its investment in fixed assets, as a higher turnover ratio suggests that the company is effectively utilizing its fixed assets to generate sales.

The slight fluctuations in the fixed asset turnover ratio could be attributed to changes in the company's asset base, sales volume, or a combination of both. The decreasing trend in the most recent quarters compared to the earlier periods may indicate a slight decrease in the efficiency of the company's fixed asset utilization.

Overall, a fixed asset turnover ratio consistently above 10 indicates that Sanmina Corporation is efficiently using its fixed assets to generate sales, but monitoring any continued decrease in the ratio is essential to ensure optimal asset utilization in the future.