TE Connectivity Ltd (TEL)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,954,000 | 16,215,000 | 14,867,000 | 12,124,000 | 13,380,000 |
| Property, plant and equipment | US$ in thousands | 3,754,000 | 3,567,000 | 3,778,000 | 3,650,000 | 3,574,000 |
| Fixed asset turnover | 4.25 | 4.55 | 3.94 | 3.32 | 3.74 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $15,954,000K ÷ $3,754,000K
= 4.25
Fixed asset turnover measures how efficiently a company is utilizing its fixed assets to generate revenue. TE Connectivity Ltd's fixed asset turnover has been fluctuating over the past five years, ranging from 3.32 to 4.55. A higher fixed asset turnover indicates that the company is generating more revenue per dollar of fixed assets.
In 2023, TE Connectivity's fixed asset turnover decreased to 4.25 from 4.55 in 2022. This could indicate a slight decrease in the efficiency of utilizing fixed assets to generate revenue. However, the ratio is still relatively high, suggesting that the company is effectively leveraging its fixed assets.
Comparing to earlier years, the company's fixed asset turnover has been trending upwards since 2020 when it was 3.32. This improvement indicates that TE Connectivity has been able to increase its revenue generation efficiency over the years by better managing its fixed assets.
Overall, TE Connectivity Ltd's fixed asset turnover reflects a positive trend over the years, indicating improving efficiency in utilizing fixed assets to drive revenue.
Peer comparison
Sep 30, 2023