Vestis Corporation (VSTS)
Fixed asset turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,805,396 | 2,837,440 | 2,848,575 | 2,842,513 | 2,825,286 | 2,792,558 | 2,762,895 |
| Property, plant and equipment | US$ in thousands | 670,858 | 655,903 | 655,311 | 660,978 | 722,421 | 713,009 | 716,003 |
| Fixed asset turnover | 4.18 | 4.33 | 4.35 | 4.30 | 3.91 | 3.92 | 3.86 |
September 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,805,396K ÷ $670,858K
= 4.18
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales from its fixed assets. A higher fixed asset turnover ratio indicates that a company is effectively utilizing its fixed assets to generate revenue.
Based on the data provided for Vestis Corporation, we see that the fixed asset turnover ratio has been relatively stable and consistently above 4 over the past 8 quarters. This indicates that Vestis Corporation has been efficient in leveraging its fixed assets to generate sales.
The trend of the fixed asset turnover ratio being above 4 suggests that Vestis Corporation has been effectively managing its fixed assets to support its sales levels. This could mean that the company is making efficient use of its property, plant, and equipment to drive revenue growth and profitability.
Overall, the consistent and relatively high fixed asset turnover ratio for Vestis Corporation reflects positively on the company's operational efficiency and effective utilization of its fixed assets. Investors and stakeholders may view this as a sign of strong management and resource utilization within the company.
Peer comparison
Sep 30, 2024