Varex Imaging Corp (VREX)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 893,400 | 859,400 | 818,100 | 738,300 | 780,600 |
| Property, plant and equipment | US$ in thousands | 143,300 | 141,000 | 139,700 | 144,700 | 142,300 |
| Fixed asset turnover | 6.23 | 6.10 | 5.86 | 5.10 | 5.49 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $893,400K ÷ $143,300K
= 6.23
Fixed asset turnover measures how efficiently a company utilizes its fixed assets to generate sales. Varex Imaging Corp's fixed asset turnover has been consistently increasing over the past five years, indicating an improving efficiency in utilizing its fixed assets. A high fixed asset turnover ratio, such as Varex's current ratio of 6.23, suggests that the company is generating a significant amount of sales relative to its investment in fixed assets. This means that Varex is effectively using its property, plant, and equipment to generate revenue. The trend of increasing fixed asset turnover over the years is a positive sign of operational efficiency and effective asset utilization within the company.
Peer comparison
Sep 30, 2023