Semtech Corporation (SMTC)

Fixed asset turnover

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 25, 2020	Jul 26, 2020	Apr 26, 2020	Jan 26, 2020	Oct 27, 2019	Jul 28, 2019	Apr 28, 2019
Revenue (ttm)	US$ in thousands	772,917	763,303	767,436	779,319	763,414	792,738	810,086	767,944	735,907	709,482	668,860	627,430	589,413	565,090	550,841	542,981	674,392	696,397	904,517	1,096,236
Property, plant and equipment	US$ in thousands	153,618	158,834	161,329	165,341	169,293	135,571	134,015	133,590	134,940	130,734	132,140	131,255	130,934	127,472	125,542	125,731	124,418	124,111	125,764	126,169
Fixed asset turnover		5.03	4.81	4.76	4.71	4.51	5.85	6.04	5.75	5.45	5.43	5.06	4.78	4.50	4.43	4.39	4.32	5.42	5.61	7.19	8.69

January 28, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $772,917K ÷ $153,618K
= 5.03

The fixed asset turnover ratio for Semtech Corporation has shown variability over the past year, ranging from a low of 4.32 to a high of 8.69. A higher fixed asset turnover ratio indicates that the company is generating more revenue relative to its investment in fixed assets.

Over the period examined, the fixed asset turnover ratio peaked at 8.69 in Q4 2019 and has since fluctuated within a range of 4.32 to 6.04. The ratio has generally remained healthy, consistently above 4.00, indicating that Semtech is effectively utilizing its fixed assets to generate revenue.

It is important to note that a declining trend in the fixed asset turnover ratio may suggest inefficiencies or changes in the company's asset utilization strategies. Conversely, a rising trend could indicate improved efficiency in generating sales from fixed assets. Monitoring this ratio over time can provide insights into Semtech's operational efficiency and asset management practices.