Vishay Intertechnology Inc (VSH)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,402,040 | 3,497,400 | 3,240,490 | 2,501,900 | 2,668,300 |
| Property, plant and equipment | US$ in thousands | 1,294,650 | 1,130,460 | 979,479 | 943,165 | 951,525 |
| Fixed asset turnover | 2.63 | 3.09 | 3.31 | 2.65 | 2.80 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,402,040K ÷ $1,294,650K
= 2.63
Fixed asset turnover measures how efficiently a company is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover indicates that the company is generating more sales relative to its investment in fixed assets.
Looking at Vishay Intertechnology's fixed asset turnover over the past five years, we observe some fluctuations in the ratio. In 2021, the fixed asset turnover was highest at 3.31, indicating that the company generated $3.31 in sales for every dollar invested in fixed assets. This suggests that Vishay Intertechnology was able to efficiently utilize its fixed assets to generate revenue during that year.
However, in 2023, the fixed asset turnover decreased to 2.63, reflecting a lower efficiency in utilizing fixed assets to generate sales compared to the previous year. This decrease may indicate that the company experienced challenges in optimizing the use of its fixed assets to drive revenue generation.
Overall, while the fixed asset turnover for Vishay Intertechnology has shown some variability, it is important for the company to focus on improving this ratio to ensure efficient utilization of fixed assets and enhance overall profitability in the future.
Peer comparison
Dec 31, 2023