Abiomed Inc. (NASDAQ:ABMD)

Net Fixed Asset Turnover

The net fixed asset turnover ratio remained relatively stable from 2017 through 2019, showing a slight increase from 5.07 to 5.31. However, it decreased notably in 2021 to 4.3 before partially recovering to 5.1 in 2022. This pattern suggests some fluctuations in the efficiency with which fixed assets were used to generate sales, with a dip during 2020-2021 potentially reflecting operational challenges or increased asset base not yet translated to proportionate revenues.

Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset

This adjusted ratio closely mirrored the standard net fixed asset turnover through 2017-2019 but showed a consistent downward trend starting in 2020, declining steadily from 5.31 to 4.17 in 2021 before a modest improvement to 4.87 in 2022. The decline indicates that when accounting for right-of-use assets associated with operating leases, asset efficiency appeared lower, possibly due to increased lease obligations or capitalized lease assets influencing the asset base.

Total Asset Turnover

Total asset turnover demonstrated a continuous decline over the period examined, decreasing from 0.81 in 2017 to 0.57 in 2021, with a slight recovery to 0.62 in 2022. This trend indicates a gradual reduction in the company's overall ability to generate revenue from its total asset base, which may signal slower sales growth relative to asset expansion or changes in asset utilization strategy.

Equity Turnover

Equity turnover also experienced a declining trajectory from 0.99 in 2017 to 0.64 in 2021, followed by a marginal increase to 0.69 in 2022. This decline reflects reduced efficiency in generating revenues from shareholders' equity over the period, which may be related to increasing equity levels or subdued sales growth relative to equity.

Revenue Trends

Revenue has demonstrated a consistent upward trajectory over the analyzed periods. Beginning at $445.3 million as of March 31, 2017, it increased to $1.03 billion by March 31, 2022. The growth rate showed acceleration particularly between 2021 and 2022, where revenue increased from approximately $847.5 million to over $1 billion. This reflects sustained business expansion and possibly successful market penetration or product demand.

Property and Equipment, Net

The net book value of property and equipment steadily increased during the review period, rising from $87.8 million in 2017 to $202.5 million in 2022. The growth was relatively consistent year-over-year with notable increments between 2019 and 2021. This suggests ongoing capital investments in fixed assets, which may indicate expansion efforts or modernization of operational facilities.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, measuring revenue generated per dollar of net fixed assets, displayed relative stability with minor fluctuations. It started at 5.07 in 2017, held steady through 2018 and 2019 with small variations, dipped to 4.3 in 2021, and recovered to 5.1 in 2022. The dip in 2021 suggests a period in which asset growth outpaced revenue growth, but the recovery in 2022 indicates improved efficiency in utilizing fixed assets to generate sales.

Summary Insights

Overall, the data indicates robust revenue growth underpinned by increased investment in property and equipment. The temporary dip in fixed asset turnover in 2021 may reflect strategic capital expenditures preceding higher revenue gains. The rebound in turnover ratio alongside record revenue in 2022 suggests successful leveraging of fixed assets to enhance business output. These trends collectively point to effective asset management and positive market performance.

Revenue Trends

Revenue experienced a consistent upward trend from 2017 to 2022. Starting at $445,304 thousand in 2017, it increased sharply to $593,749 thousand in 2018 and continued to rise annually, reaching $1,031,753 thousand by 2022. The growth was especially notable between 2021 and 2022, indicating accelerated sales performance in the most recent period.

Property and Equipment Trends

The net value of property and equipment, including operating lease and right-of-use assets, also showed steady growth over the period analyzed. From $87,777 thousand in 2017, the value rose each year, culminating at $212,008 thousand in 2022. This steady increase reflects ongoing investments in fixed assets, potentially indicating expansion or upgrades in operational capacity.

Net Fixed Asset Turnover Ratio Analysis

The net fixed asset turnover ratio, which measures the efficiency in using fixed assets to generate revenue, remained relatively stable from 2017 to 2019, fluctuating slightly around the range of 5.07 to 5.31. However, a decline was observed in 2020 and 2021, dropping to 4.76 and 4.17 respectively, suggesting a temporary decrease in asset utilization efficiency during those years. In 2022, the ratio improved to 4.87, indicating a partial recovery in the efficient use of fixed assets to generate revenue.

Overall Insights

The data reflects a company experiencing steady revenue growth alongside significant investment in property and equipment. While the net fixed asset turnover ratio decreased in the middle of the period, it showed signs of recovery in the latest year. This pattern may imply that while asset base expansion temporarily outpaced revenue growth, operational efficiency is now improving. The overall financial data portrays a company focused on growth with an emphasis on asset accumulation and a gradually recovering efficiency in asset utilization.

The financial data reveals several key trends over the six-year period ending March 31, 2022. Revenue has demonstrated consistent growth, increasing from $445.3 million in 2017 to $1.03 billion in 2022. This steady upward trajectory indicates a robust increase in business activity and sales volume.

Total assets have also expanded significantly, rising from approximately $550.4 million in 2017 to $1.67 billion in 2022. This substantial growth reflects ongoing investment in assets, which could include property, equipment, and other resources necessary to support the company’s expanding operations.

Despite the growth in both revenue and total assets, the total asset turnover ratio shows a declining trend over the period. It decreased from 0.81 in 2017 to a low of 0.57 in 2021, followed by a slight recovery to 0.62 in 2022. This ratio measures the efficiency of the company in using its assets to generate revenue. The decrease suggests that asset growth has outpaced revenue growth, potentially indicating less efficient asset utilization or significant asset acquisitions that have not yet contributed proportionately to revenue generation.

Revenue Trends

Consistent year-over-year increase, nearly doubling in five years, reflecting strong sales growth.

Total Assets

Substantial increase indicating investment in asset base to support business expansion.

Total Asset Turnover Ratio

Downward trend overall, suggesting decreased efficiency in asset use despite revenue growth, with a minor improvement in the latest year.

Revenue Trends

Revenue exhibited a steady upward trajectory over the observed periods. Starting at US$445.3 million in 2017, it increased consistently each year, reaching US$1.032 billion by 2022. The most significant annual growth occurred between 2021 and 2022, where revenue increased by approximately 21.7%.

Stockholders' Equity Trends

Stockholders' equity showed a continuous increase from US$452.1 million in 2017 to US$1.503 billion in 2022. This rise indicates sustained growth in the company’s net assets over the period. The increase was consistent year-over-year, with no indications of decline or stagnation.

Equity Turnover Ratio Analysis

The equity turnover ratio experienced a declining trend from 0.99 in 2017 to a low of 0.64 in 2021, followed by a slight increase to 0.69 in 2022. This decline suggests that the efficiency of generating revenue from equity decreased over the majority of the period, though the uptick in 2022 may indicate some improvement in capital utilization during the final year analyzed.

Overall Observations

The data indicates robust revenue growth alongside expanding stockholders’ equity, reflecting overall corporate growth and increased asset base. However, the decreasing equity turnover ratio over most years points to a relative decline in capital efficiency, which partially ameliorated in 2022. This could warrant further investigation into operational efficiency and capital management strategies.