TE Connectivity Ltd (TEL)
Fixed asset turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 15,808,000 | 15,756,000 | 15,755,000 | 15,947,000 | 15,954,000 | 16,279,000 | 16,380,000 | 16,229,000 | 16,215,000 | 15,678,000 | 15,430,000 | 15,166,000 | 14,867,000 | 14,324,000 | 13,028,000 | 12,487,000 | 12,136,000 | 12,175,000 | 13,016,000 | 13,229,000 |
| Property, plant and equipment | US$ in thousands | 3,903,000 | 3,758,000 | 3,799,000 | 3,854,000 | 3,754,000 | 3,781,000 | 3,818,000 | 3,781,000 | 3,567,000 | 3,712,000 | 3,817,000 | 3,827,000 | 3,778,000 | 3,723,000 | 3,662,000 | 3,768,000 | 3,650,000 | 3,598,000 | 3,558,000 | 3,659,000 |
| Fixed asset turnover | 4.05 | 4.19 | 4.15 | 4.14 | 4.25 | 4.31 | 4.29 | 4.29 | 4.55 | 4.22 | 4.04 | 3.96 | 3.94 | 3.85 | 3.56 | 3.31 | 3.32 | 3.38 | 3.66 | 3.62 |
September 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,808,000K ÷ $3,903,000K
= 4.05
TE Connectivity Ltd's fixed asset turnover ratio has been relatively stable over the past few years, ranging from 3.31 to 4.55. The company's fixed asset turnover measures the efficiency of TE Connectivity in generating sales revenue from its investment in fixed assets, such as property, plant, and equipment.
The ratio peaked at 4.55 in September 2022, indicating that TE Connectivity was able to generate $4.55 in sales for every dollar invested in fixed assets during that period. This suggests efficient utilization of fixed assets to generate revenue.
Although there have been fluctuations in the ratio over the reporting periods, the general trend has been upwards, indicating an improvement in the use of fixed assets to drive sales revenue.
Overall, TE Connectivity's fixed asset turnover ratio reflects the company's ability to efficiently generate revenue from its investment in fixed assets, a positive indicator of operational efficiency and asset utilization.
Peer comparison
Sep 30, 2024