Blackline Inc (BL)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	583,245	518,558	355,637	328,649	280,261
Property, plant and equipment	US$ in thousands	14,867	19,811	16,321	13,239	13,024
Fixed asset turnover		39.23	26.18	21.79	24.82	21.52

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $583,245K ÷ $14,867K
= 39.23

Over the past five years, Blackline Inc's fixed asset turnover has shown an increasing trend, indicating the company's improved efficiency in generating revenue from its fixed assets. The fixed asset turnover ratio measures how effectively a company is utilizing its fixed assets to generate sales revenue.

In 2023, the fixed asset turnover ratio reached 39.23, which is significantly higher than the ratios of the previous years. This indicates that for every dollar invested in fixed assets, the company generated $39.23 in sales revenue. The substantial increase in the fixed asset turnover ratio for 2023 suggests that Blackline Inc has achieved a higher level of operational efficiency and productivity in utilizing its fixed assets to drive revenue growth.

The steady improvement in the fixed asset turnover ratio from 2019 to 2023 reflects Blackline Inc's ability to optimize its asset utilization, potentially driven by strategic investments in technology, process improvement initiatives, or efficient capital allocation. This trend indicates that the company is effectively managing its fixed asset base to maximize revenue generation and improve overall operational performance.

Overall, the increasing fixed asset turnover ratio for Blackline Inc signifies positive operational efficiency and effective utilization of fixed assets to drive revenue growth, which bodes well for the company's financial health and sustainability in the long run.