Zimmer Biomet Holdings Inc (ZBH)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,434,500 | 7,171,400 | 6,780,400 | 7,459,000 | 6,789,700 |
| Property, plant and equipment | US$ in thousands | 2,048,800 | 2,060,400 | 1,872,500 | 1,836,600 | 2,047,700 |
| Fixed asset turnover | 3.63 | 3.48 | 3.62 | 4.06 | 3.32 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,434,500K ÷ $2,048,800K
= 3.63
The fixed asset turnover ratio for Zimmer Biomet Holdings Inc has shown variability over the past five years. It increased from 3.32 in December 31, 2020, to 4.06 in December 31, 2021, indicating that the company generated $4.06 in sales for every dollar invested in fixed assets. However, it decreased slightly to 3.62 by December 31, 2022, and then further to 3.48 by December 31, 2023. By the end of December 31, 2024, the fixed asset turnover ratio had increased to 3.63.
The overall trend suggests that the company has been effectively utilizing its fixed assets to generate sales, with a notable improvement in 2021. However, the slight decline in subsequent years may indicate the need for Zimmer Biomet Holdings Inc to further optimize its asset management strategies to sustain or improve its efficiency in generating revenue from its fixed assets.
Peer comparison
Dec 31, 2024