Semtech Corporation (SMTC)

Fixed asset turnover

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Jan 26, 2020
Revenue	US$ in thousands	772,240	763,171	735,908	589,413	538,320
Property, plant and equipment	US$ in thousands	153,618	169,293	134,940	130,934	124,418
Fixed asset turnover		5.03	4.51	5.45	4.50	4.33

January 28, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $772,240K ÷ $153,618K
= 5.03

The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively using its fixed assets to generate sales.

Looking at the trend over the past five years for Semtech Corporation:

- The fixed asset turnover ratio has been consistently above 4, indicating that Semtech has been making effective use of its fixed assets to generate revenue.
- There was a slight decrease from 2019 to 2020, but this was followed by an increasing trend in 2022 and 2024.
- In 2022, the company achieved its highest fixed asset turnover ratio of 5.45, suggesting a peak in efficiency in that year.
- Overall, Semtech Corporation has shown a strong performance in generating sales from its fixed assets over the years, with the ratio consistently above industry averages.

It is important for the company to continue monitoring and managing its fixed assets efficiently to sustain this positive trend and drive profitability in the long term.