Advanced Drainage Systems Inc (WMS)
Fixed asset turnover
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,904,245 | 2,942,324 | 2,914,153 | 2,911,763 | 2,874,473 | 2,838,192 | 2,830,992 | 2,934,981 | 3,071,121 | 3,131,749 | 3,191,939 | 3,014,201 | 2,769,315 | 2,534,937 | 2,305,725 | 2,143,441 | 1,982,780 | 1,909,739 | 1,817,018 | 1,768,736 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | — | 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 |
| Fixed asset turnover | — | — | — | — | — | — | 3.66 | 3.93 | 4.19 | 4.57 | 4.88 | 4.74 | 4.47 | 4.29 | 4.24 | 4.14 | 3.93 | 3.85 | 3.77 | 3.71 |
March 31, 2025 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,904,245K ÷ $—K
= —
Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate sales. The ratio is calculated by dividing net sales by average fixed assets.
Analyzing the fixed asset turnover data for Advanced Drainage Systems Inc from June 30, 2020, to March 31, 2025, reveals a generally increasing trend over this period. The fixed asset turnover ratio has been steadily improving, starting at 3.71 in June 2020 and reaching a peak of 4.88 in September 30, 2022. This indicates that the company has been effectively using its fixed assets to generate revenue.
However, there was a slight decline in the ratio after September 30, 2022, with a dip to 4.57 by December 31, 2022. This was followed by a more significant drop to 3.93 by June 30, 2023, and further down to 3.66 by September 30, 2023. These declines may suggest a possible decrease in the efficiency of fixed asset utilization during this period.
The data for the latter part of the period (December 31, 2023, to March 31, 2025) is not provided, but the trend up to September 30, 2023, indicates that Advanced Drainage Systems Inc should continue to monitor its fixed asset turnover ratio to ensure optimal utilization of fixed assets and maintain or improve efficiency in generating sales.