Teleflex Incorporated (TFX)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,908,220	2,757,200	2,758,900	2,489,840	2,525,140
Property, plant and equipment	US$ in thousands	479,913	447,205	443,758	473,912	430,719
Fixed asset turnover		6.06	6.17	6.22	5.25	5.86

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,908,220K ÷ $479,913K
= 6.06

The fixed asset turnover ratio measures a company's ability to generate sales revenue from its investment in fixed assets. In the case of Teleflex Incorporated, the fixed asset turnover ratio has gradually improved from 5.35 in 2020 to 6.20 in 2023. This indicates that the company is utilizing its fixed assets more efficiently to generate sales.

A higher fixed asset turnover ratio suggests that Teleflex is effectively managing and utilizing its fixed assets to generate revenue. This improvement indicates that the company is becoming more efficient in using its fixed assets to drive sales growth over the years.

However, it is important to note that a very high fixed asset turnover ratio could also indicate potential underutilization of fixed assets or aggressive sales strategies. It is essential for Teleflex to maintain a balance between asset efficiency and investment in fixed assets to support future growth and profitability.