Vicor Corporation (VICR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 413,907 | 400,531 | 719,112 | 594,138 | 526,740 |
| Property, plant and equipment | US$ in thousands | 157,689 | 166,009 | 115,975 | 74,843 | 56,952 |
| Fixed asset turnover | 2.62 | 2.41 | 6.20 | 7.94 | 9.25 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $413,907K ÷ $157,689K
= 2.62
The fixed asset turnover ratio for Vicor Corp. has been fluctuating over the past five years. It decreased from 4.99 in 2019 to 2.57 in 2023, indicating a declining trend in the efficiency of generating sales from fixed assets. This may suggest that the company's fixed assets are not being utilized as effectively to generate revenue in recent years.
The ratio is below its 5-year average of 3.43, indicating a potential inefficiency in the utilization of fixed assets compared to the historical performance. Further analysis is required to understand the factors contributing to this decline, such as changes in the company's production capacity, capital expenditures, or sales volume. Overall, the decreasing trend in fixed asset turnover for Vicor Corp. warrants attention and further investigation to improve operational efficiency and asset utilization.
Peer comparison
Dec 31, 2023