Zimmer Biomet Holdings Inc (ZBH)

Fixed asset turnover

		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	Mar 31, 2020
Revenue (ttm)	US$ in thousands	7,434,500	7,373,400	7,289,700	7,214,600	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
Property, plant and equipment	US$ in thousands	2,048,800	2,107,200	2,103,000	2,090,900	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
Fixed asset turnover		3.63	3.50	3.47	3.45	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

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ 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 period ranging from March 31, 2020, to December 31, 2024. The ratio started at 3.68 in March 2020, indicating that the company generated $3.68 in sales for each $1 invested in fixed assets.

The ratio then fluctuated between 3.33 and 3.99 before reaching 4.06 in December 31, 2021, which was the highest level observed during this period. This increase suggests that Zimmer Biomet became more efficient in generating sales relative to its fixed assets investment.

Subsequently, the ratio fluctuated between 3.45 and 3.63, indicating a slight decrease in efficiency compared to the peak in December 2021. Overall, the trend in the fixed asset turnover ratio for Zimmer Biomet Holdings Inc reflects variability in the company's ability to utilize its fixed assets efficiently to generate revenues over the period under review.