Advanced Drainage Systems Inc (WMS)
Fixed asset turnover
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,884,829 | 2,852,169 | 2,844,969 | 2,948,958 | 3,071,658 | 3,135,190 | 3,194,631 | 3,016,141 | 2,772,332 | 2,532,878 | 2,304,154 | 2,142,145 | 1,978,469 | 1,906,416 | 1,813,956 | 1,765,189 | 1,672,121 | 1,573,571 | 1,498,558 | 1,410,542 |
| Property, plant and equipment | US$ in thousands | 798,283 | 810,887 | 773,993 | 747,312 | 733,059 | 685,496 | 653,432 | 636,042 | 619,383 | 590,949 | 544,187 | 518,229 | 504,275 | 496,052 | 481,947 | 477,100 | 481,380 | 488,386 | 492,017 | 396,280 |
| Fixed asset turnover | 3.61 | 3.52 | 3.68 | 3.95 | 4.19 | 4.57 | 4.89 | 4.74 | 4.48 | 4.29 | 4.23 | 4.13 | 3.92 | 3.84 | 3.76 | 3.70 | 3.47 | 3.22 | 3.05 | 3.56 |
March 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,884,829K ÷ $798,283K
= 3.61
The fixed asset turnover ratio for Advanced Drainage Systems Inc has shown some fluctuations over the past few quarters. The ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.
Based on the data provided, the fixed asset turnover ratio ranged from a low of 3.05 to a high of 4.89. Generally, a higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar invested in fixed assets.
The trend in the fixed asset turnover ratio for Advanced Drainage Systems Inc shows some variability, with a general declining trend from 2019 to mid-2022 and a slight increase thereafter. This suggests that the company may have increased its revenue generation efficiency in utilizing its fixed assets more effectively during the later periods.
Overall, monitoring the fixed asset turnover ratio can help assess how efficiently Advanced Drainage Systems Inc is using its fixed assets to generate sales, which is crucial for evaluating operational performance and investment efficiency.