Waters Corporation (WAT)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,842,300	2,892,160	2,735,940	2,309,300	2,348,910
Property, plant and equipment	US$ in thousands	639,073	582,217	547,913	494,003	417,342
Fixed asset turnover		4.45	4.97	4.99	4.67	5.63

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,842,300K ÷ $639,073K
= 4.45

The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is more effectively utilizing its fixed assets to generate sales.

In the case of Waters Corp., the trend in fixed asset turnover over the past five years shows some fluctuations. The ratio has ranged from a high of 5.77 in 2019 to a low of 4.63 in 2023. Overall, the company has maintained relatively high fixed asset turnover ratios, suggesting that Waters Corp. has been effectively utilizing its fixed assets to generate sales.

The slight decline in fixed asset turnover from 2022 to 2023 may indicate either a decrease in sales relative to fixed assets or an increase in the value of fixed assets without a corresponding increase in sales. Further analysis would be needed to determine the specific factors influencing this trend.

Overall, the fixed asset turnover ratios for Waters Corp. indicate that the company is efficiently generating revenue from its fixed assets, which is a positive sign of operational efficiency.