Zimmer Biomet Holdings Inc (ZBH)

Fixed asset turnover

		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	Mar 31, 2019
Revenue (ttm)	US$ in thousands	7,171,500	7,054,100	6,993,800	6,933,800	6,780,400	6,827,800	7,061,000	7,290,300	7,452,200	7,716,200	7,722,600	6,923,200	6,840,900	6,881,300	6,840,200	7,596,700	7,805,400	7,750,700	7,677,500	7,646,100
Property, plant and equipment	US$ in thousands	2,060,400	2,032,200	1,975,000	1,906,400	1,872,500	1,801,600	1,796,600	1,825,900	1,836,600	2,008,200	2,005,200	2,021,900	2,047,700	2,042,500	2,056,500	2,065,500	2,077,400	2,055,300	2,035,800	2,014,000
Fixed asset turnover		3.48	3.47	3.54	3.64	3.62	3.79	3.93	3.99	4.06	3.84	3.85	3.42	3.34	3.37	3.33	3.68	3.76	3.77	3.77	3.80

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,171,500K ÷ $2,060,400K
= 3.48

The fixed asset turnover ratio for Zimmer Biomet Holdings Inc has been fluctuating over the past eight quarters, ranging from 3.58 to 4.19. This ratio measures the company's ability to generate sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.

From the data provided, we can see that the fixed asset turnover ratio has been gradually decreasing since Q1 2022, where it was at its peak of 4.19. This downward trend suggests that Zimmer Biomet Holdings Inc may be experiencing challenges in efficiently utilizing its fixed assets to generate sales revenue.

However, it is important to note that fluctuations in the fixed asset turnover ratio could be influenced by various factors, such as changes in industry demand, management decisions regarding asset investments, or the disposal of obsolete assets. Further analysis and comparison with industry benchmarks would provide more insights into the company's performance in managing its fixed assets efficiently.