Sensata Technologies Holding NV (ST)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,876,360 | 3,985,560 | 3,641,520 | 3,045,580 | 3,450,630 |
| Property, plant and equipment | US$ in thousands | 870,033 | 840,819 | 820,933 | 803,825 | 830,998 |
| Fixed asset turnover | 4.46 | 4.74 | 4.44 | 3.79 | 4.15 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,876,360K ÷ $870,033K
= 4.46
The fixed asset turnover ratio for Sensata Technologies Holding Plc has shown some fluctuation over the past five years. The ratio has ranged from 3.79 to 4.79, with the highest value recorded in 2022 at 4.79 and the lowest in 2020 at 3.79. This ratio indicates that the company generated $4.58 in revenue for every dollar invested in fixed assets in 2023.
A consistently high fixed asset turnover ratio suggests that Sensata Technologies is effectively utilizing its fixed assets to generate sales. However, the slight fluctuations in the ratio over the years indicate some variability in the efficiency of asset utilization. The company's management may want to investigate the factors contributing to these fluctuations to ensure optimal utilization of its fixed assets in the future.
Peer comparison
Dec 31, 2023