SanDisk Corp (SNDK)
Fixed asset turnover
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,564,870 | 6,627,700 | 6,170,000 | 5,052,510 | 4,826,810 |
| Property, plant and equipment | US$ in thousands | 817,130 | 724,357 | 655,794 | 665,542 | 344,897 |
| Fixed asset turnover | 6.81 | 9.15 | 9.41 | 7.59 | 13.99 |
December 31, 2015 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,564,870K ÷ $817,130K
= 6.81
The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. In the case of SanDisk Corp, the fixed asset turnover has shown some fluctuations over the years.
In 2011, SanDisk Corp had a high fixed asset turnover ratio of 13.99, indicating that the company generated $13.99 in sales for every dollar invested in fixed assets. This suggests a high level of efficiency in asset utilization.
However, in the following years, the fixed asset turnover ratio declined. By 2015, the ratio had dropped to 6.81, indicating a decrease in efficiency in utilizing fixed assets to generate revenue.
Overall, the trend in the fixed asset turnover ratio for SanDisk Corp shows a decline in asset efficiency over the years, suggesting potential issues with asset utilization or changes in the company's business operations. Further analysis would be needed to understand the specific factors driving these changes and their implications for the company's financial performance.
Peer comparison
Dec 31, 2015