Box Inc (BOX)

Fixed asset turnover

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Revenue	US$ in thousands	1,040,660	994,397	877,506	773,486	702,138
Property, plant and equipment	US$ in thousands	31,353	69,972	105,755	160,148	190,976
Fixed asset turnover		33.19	14.21	8.30	4.83	3.68

January 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,040,660K ÷ $31,353K
= 33.19

The fixed asset turnover ratio measures the efficiency with which Box Inc generates sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.

Box Inc's fixed asset turnover has shown a consistent upward trend over the past five years. In Fiscal Year 2020, the ratio was 3.68, and it has steadily increased to 33.19 in Fiscal Year 2024. This significant increase indicates that the company has been able to generate significantly more sales revenue per dollar invested in fixed assets.

The improvement in fixed asset turnover suggests that Box Inc has been able to optimize the utilization of its fixed assets, possibly through improved operational efficiency or better asset management strategies. This trend is generally viewed positively by investors and analysts as it signifies improved operational performance and potential cost savings.

Overall, the increasing trend in Box Inc's fixed asset turnover ratio over the years reflects the company's ability to generate more sales from its fixed asset base, implying effective asset utilization and operational efficiency.