Simulations Plus Inc (SLP)

Fixed asset turnover

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Revenue (ttm)	US$ in thousands	64,668	62,113	59,577	55,682	54,407	53,453	53,906	52,013	49,831	48,182	46,466	46,165	45,686	42,889	41,589	40,075	37,714	35,836	33,971	32,633
Property, plant and equipment	US$ in thousands	843	487	671	701	822	682	632	607	634	2,339	1,838	1,260	924	596	438	357	335	335	341	312
Fixed asset turnover		76.71	127.54	88.79	79.43	66.19	78.38	85.29	85.69	78.60	20.60	25.28	36.64	49.44	71.96	94.95	112.25	112.58	106.97	99.62	104.59

February 29, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $64,668K ÷ $843K
= 76.71

The fixed asset turnover ratio for Simulations Plus Inc has varied over the last few quarters. The ratio measures the company's ability to generate sales revenue from its investment in fixed assets.

From Nov 2019 to Nov 2020, the fixed asset turnover ratio showed a decreasing trend from 104.59 to 20.60, indicating a decline in the company's efficiency in generating sales from its fixed assets. This suggests that the company may have been less effective in utilizing its fixed assets to drive revenue during this period.

However, starting from Nov 2020 to Feb 2024, the fixed asset turnover ratio showed an increasing trend, reaching a peak of 127.54 in Nov 2023. This indicates an improvement in efficiency in generating sales from fixed assets during these quarters.

Overall, the company's fixed asset turnover has shown fluctuations over the analyzed period, indicating varying levels of efficiency in utilizing fixed assets to generate sales revenue. Further analysis of the company's investment in fixed assets and the effectiveness of their utilization may provide additional insights into these fluctuations.