TE Connectivity Ltd (TEL)
Fixed asset turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 13,393,000 | 13,602,000 | 13,965,000 |
| Property, plant and equipment | US$ in thousands | 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 | 3,574,000 | 3,636,000 | 3,596,000 |
| Fixed asset turnover | 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 | 3.75 | 3.74 | 3.88 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,947,000K ÷ $3,854,000K
= 4.14
TE Connectivity Ltd's fixed asset turnover ratio indicates the company's efficiency in generating sales from its investments in fixed assets. The trend of the fixed asset turnover ratio shows fluctuations over the past few years. From 2019 to 2020, there was a slight decrease in the ratio, followed by a more significant drop by the end of 2020. In 2021, there was an improvement in the ratio, with a steady increase throughout the year. This positive trend continued into 2022, reaching a peak in the third quarter of that year.
However, the ratio declined in the first quarter of 2023 but quickly recovered and stabilized in the following quarters. Overall, TE Connectivity Ltd's fixed asset turnover has been relatively strong, consistently above 3.5, with occasional fluctuations. The recent values ranging from 4.04 to 4.55 indicate that the company efficiently utilizes its fixed assets to generate revenue.
It is important for the company to monitor this ratio over time to ensure that it remains at a healthy level, indicating effective management of its fixed assets in generating sales.
Peer comparison
Dec 31, 2023