Vicor Corporation (VICR)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 370,896 | 413,907 | 400,531 | 719,112 | 594,138 |
| Property, plant and equipment | US$ in thousands | 152,705 | 157,689 | 166,009 | 115,975 | 74,843 |
| Fixed asset turnover | 2.43 | 2.62 | 2.41 | 6.20 | 7.94 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $370,896K ÷ $152,705K
= 2.43
Vicor Corporation's fixed asset turnover ratio has experienced a declining trend over the years. In 2020, the ratio stood at a robust 7.94, indicating that the company generated $7.94 in sales for every dollar invested in fixed assets. However, this ratio decreased to 6.20 in 2021, signaling a slight decrease in the efficiency of utilizing fixed assets to generate revenue.
A more significant decline was observed in 2022, with the fixed asset turnover plummeting to 2.41, suggesting that the company generated only $2.41 in sales for every dollar invested in fixed assets. This sharp decrease raises concerns about the company's ability to efficiently utilize its fixed assets to generate revenue.
There was a slight improvement in 2023, with the fixed asset turnover ratio increasing to 2.62. However, it still remained significantly lower than the levels seen in the earlier years. In 2024, the ratio decreased again to 2.43, indicating a continued struggle in maximizing the revenue generated from the investment in fixed assets.
Overall, the declining trend in Vicor Corporation's fixed asset turnover ratio raises questions about the company's operational efficiency and its ability to generate sales from its fixed asset base in a cost-effective manner. Further analysis and strategies may be required to enhance the utilization of fixed assets and improve overall profitability.
Peer comparison
Dec 31, 2024