Vestis Corporation (VSTS)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,800,900 | 2,825,290 | 2,687,000 | 2,456,580 | 2,562,000 |
| Property, plant and equipment | US$ in thousands | 670,858 | 722,421 | 722,166 | 740,259 | — |
| Fixed asset turnover | 4.18 | 3.91 | 3.72 | 3.32 | — |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,800,900K ÷ $670,858K
= 4.18
The fixed asset turnover ratio for Vestis Corporation has shown an increasing trend over the years, indicating improved efficiency in utilizing its fixed assets to generate revenue.
From 2020 to 2024, the fixed asset turnover ratio has increased steadily from an undisclosed value to 4.18. This suggests that the company is generating $4.18 in revenue for every dollar invested in fixed assets as of September 30, 2024.
The increasing trend in the fixed asset turnover ratio is a positive sign, as it shows that Vestis Corporation has been able to generate more sales per dollar of fixed assets employed in its operations. This could be attributed to better asset management, higher sales volume, or improved operational efficiency.
Overall, the improving fixed asset turnover ratio indicates that Vestis Corporation has been successful in optimizing its fixed asset utilization, which can lead to higher profitability and return on investment for the company.
Peer comparison
Sep 30, 2024