Avis Budget Group Inc (CAR)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,008,000 | 12,015,000 | 11,998,000 | 12,119,000 | 11,994,000 | 11,792,000 | 11,246,000 | 10,373,000 | 9,313,000 | 8,099,000 | 6,632,000 | 5,021,000 | 5,402,000 | 6,209,000 | 7,428,000 | 9,005,000 | 9,172,000 | 9,060,000 | 9,085,000 | 9,076,000 |
| Property, plant and equipment | US$ in thousands | 719,000 | 647,000 | 624,000 | 604,000 | 594,000 | 506,000 | 520,000 | 531,000 | 537,000 | 540,000 | 578,000 | 611,000 | 657,000 | 692,000 | 729,000 | 767,000 | 792,000 | 752,000 | 749,000 | 737,000 |
| Fixed asset turnover | 16.70 | 18.57 | 19.23 | 20.06 | 20.19 | 23.30 | 21.63 | 19.53 | 17.34 | 15.00 | 11.47 | 8.22 | 8.22 | 8.97 | 10.19 | 11.74 | 11.58 | 12.05 | 12.13 | 12.31 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $12,008,000K ÷ $719,000K
= 16.70
The fixed asset turnover ratio for Avis Budget Group Inc has shown a declining trend over the past eight quarters. The ratio decreased from 0.72 in Q4 2022 to 0.55 in Q4 2023, indicating that the company generated $0.55 in revenue for every dollar invested in fixed assets in the most recent quarter.
The fluctuation in the fixed asset turnover ratio suggests that Avis Budget Group may be experiencing challenges in efficiently utilizing its fixed assets to generate revenue. A decreasing ratio could indicate underutilization of assets or potential inefficiencies in operations.
It is important for the company to monitor and analyze the factors influencing the fixed asset turnover ratio, such as changes in asset utilization, pricing strategies, or operational efficiencies, to make informed decisions and improve overall performance. Further investigation into the underlying reasons for the decline in the ratio may help identify opportunities for optimization and growth within the company's operations.
Peer comparison
Dec 31, 2023