Varex Imaging Corp (VREX)
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 | 879,200 | 894,700 | 913,200 | 893,400 | 876,100 | 864,900 | 860,000 | 855,500 | 845,000 | 823,100 | 745,000 | 708,700 | 708,000 | 738,300 | 769,500 | 796,800 | 794,700 | 780,600 | 767,300 | 766,900 |
| Property, plant and equipment | US$ in thousands | 147,300 | 143,300 | 141,800 | 142,400 | 142,600 | 141,000 | 135,800 | 136,100 | 137,200 | 139,700 | 141,700 | 141,700 | 144,200 | 144,700 | 144,900 | 146,100 | 145,600 | 142,300 | 138,600 | 137,100 |
| Fixed asset turnover | 5.97 | 6.24 | 6.44 | 6.27 | 6.14 | 6.13 | 6.33 | 6.29 | 6.16 | 5.89 | 5.26 | 5.00 | 4.91 | 5.10 | 5.31 | 5.45 | 5.46 | 5.49 | 5.54 | 5.59 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $879,200K ÷ $147,300K
= 5.97
The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets effectively to generate sales.
Analyzing the trend in Varex Imaging Corp's fixed asset turnover ratio over the provided periods, we observe fluctuations in the ratio. The ratio has generally shown an increasing trend from 2019 to 2020, peaking at 6.44 in June 2023. This upward trend suggests that Varex Imaging Corp has been able to generate more revenue per dollar of fixed assets invested, indicating improved efficiency in asset utilization.
However, it is important to note that the ratio experienced some variability within this period, with occasional dips in the ratio such as in March 2021 and September 2021. These fluctuations could be attributed to various factors such as changes in sales volume, asset base, or management of fixed assets.
Overall, the increasing trend in Varex Imaging Corp's fixed asset turnover ratio signals that the company has been effectively using its fixed assets to drive revenue generation, which is a positive indicator of operational efficiency and effectiveness in managing its asset base.
Peer comparison
Dec 31, 2023