Bio-Techne Corp (TECH)

Fixed asset turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	1,159,360	1,137,170	1,094,290	917,080	1,458,180
Property, plant and equipment	US$ in thousands	251,154	226,200	223,242	207,907	176,829
Fixed asset turnover		4.62	5.03	4.90	4.41	8.25

June 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,159,360K ÷ $251,154K
= 4.62

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate sales.

Bio-Techne Corp's fixed asset turnover has exhibited fluctuations over the past five years. In Jun 2020, the ratio was exceptionally high at 8.25, indicating robust efficiency in generating sales from its fixed assets. However, this ratio decreased over the subsequent years, reaching 4.62 in Jun 2024.

A high fixed asset turnover ratio can be advantageous as it implies that the company is effectively using its fixed assets to generate revenue. Conversely, a declining ratio may indicate underutilization of assets or decreasing sales relative to the investment in fixed assets.

In the case of Bio-Techne Corp, the decreasing trend in fixed asset turnover from 2020 to 2024 suggests a potential decline in efficiency in utilizing fixed assets to generate sales revenue. Further analysis would be needed to understand the factors contributing to this trend and to identify potential areas for improvement in asset utilization efficiency.