Vestis Corporation (VSTS)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,825,290 | 2,687,000 | 2,456,580 | 2,562,000 |
| Property, plant and equipment | US$ in thousands | 722,421 | 722,166 | 740,259 | — |
| Fixed asset turnover | 3.91 | 3.72 | 3.32 | — |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,825,290K ÷ $722,421K
= 3.91
The fixed asset turnover ratio for Vestis Corporation has been on an upward trend over the past three years, increasing from 3.32 in 2021 to 3.91 in 2023. This indicates that the company generated $3.91 in revenue for every $1 invested in fixed assets in 2023, compared to $3.32 in 2021. The higher fixed asset turnover ratio suggests that Vestis Corporation has been more efficient in utilizing its fixed assets to generate sales revenue. This improvement could be attributed to better asset management, increased sales, or a combination of both factors. Overall, the rising trend in the fixed asset turnover ratio reflects positively on the company's operational efficiency and asset utilization.
Peer comparison
Sep 30, 2023