ScanSource Inc (SCSC)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,271,770 | 3,765,770 | 3,521,330 | 3,143,030 | 3,034,980 |
| Property, plant and equipment | US$ in thousands | 33,501 | 37,379 | 37,477 | 42,836 | 55,641 |
| Fixed asset turnover | 97.66 | 100.75 | 93.96 | 73.37 | 54.55 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,271,770K ÷ $33,501K
= 97.66
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. A higher fixed asset turnover implies that the company is generating more sales relative to its investment in fixed assets.
ScanSource Inc's fixed asset turnover has been consistently high over the past five years, ranging from 54.55 to 100.75. This indicates that the company has been effectively utilizing its fixed assets to generate sales. The decreasing trend from 2020 to 2021 and the subsequent increase in 2022 and 2023 suggest some fluctuations in asset utilization efficiency. However, the ratio has remained at relatively high levels overall.
The exceptionally high fixed asset turnover of 97.66 in 2024 indicates that ScanSource Inc is currently generating a significant amount of sales relative to its investment in fixed assets. This may suggest efficient operations and effective management of fixed assets to drive revenue generation.
Overall, the consistently high fixed asset turnover ratios demonstrate ScanSource Inc's ability to efficiently utilize its fixed assets to generate sales, which is a positive indicator of operational efficiency and asset utilization.
Peer comparison
Jun 30, 2024