Name: Fixed Asset Turnover

Definition: Fixed asset turnover shows how well the company’s long-term physical assets — factories, equipment, property — are being used to generate sales. A high ratio means the company’s facilities are productive and efficient. A low ratio might signal underused assets or over-investment in equipment that isn’t driving enough sales.

Interpretation:
• In '2021', LGCL's fixed asset turnover was 21.66, illustrating how efficiently fixed assets are generating revenue. Industry average for Computer Software: Programming Data Processing in '2021' stood at 3.99.
• In '2022', LGCL's fixed asset turnover was 21.47, illustrating how efficiently fixed assets are generating revenue. The decline from '2021' may indicate some operational or financial challenges. Industry average for Computer Software: Programming Data Processing in '2022' stood at 4.33. Industry average increased by 0.34 compared to previous year.
• In '2023', LGCL's fixed asset turnover was 32.88, illustrating how efficiently fixed assets are generating revenue. The increase since '2022' reflects strengthening financial performance. Industry average for Computer Software: Programming Data Processing in '2023' stood at 4.08. Industry average declined by 0.25 from previous year.
• In '2024', LGCL's fixed asset turnover was 15.94, illustrating how efficiently fixed assets are generating revenue. The decline from '2023' may indicate some operational or financial challenges. Industry average for Computer Software: Programming Data Processing in '2024' stood at 4.35. Industry average increased by 0.27 compared to previous year.
Overall, LGCL's fixed asset turnover has been volatile but showed a downward trend over the past 4 years.

Formula: Fixed Asset Turnover = Net Sales / Net Fixed Assets

Good Range: Ranges from 1 to 5 depending on asset intensity.