Cars.com Inc (CARS)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	658,830	618,556	584,954	509,647	575,908
Property, plant and equipment	US$ in thousands	43,853	45,218	43,005	41,323	43,696
Fixed asset turnover		15.02	13.68	13.60	12.33	13.18

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $658,830K ÷ $43,853K
= 15.02

Fixed asset turnover measures how efficiently a company utilizes its fixed assets to generate revenue. In the case of Cars.com, the fixed asset turnover has been consistently strong over the past five years, with values ranging from 13.25 to 15.72.

Cars.com's fixed asset turnover ratio indicates that the company is generating significant revenue relative to its investment in fixed assets. A higher fixed asset turnover ratio suggests that the company is effectively using its fixed assets to generate sales.

The increasing trend in fixed asset turnover over the years indicates that Cars.com has been improving its efficiency in utilizing its fixed assets to generate revenue. This may be attributed to various factors such as operational improvements, asset utilization strategies, or effective capital investments.

Overall, Cars.com's strong and improving fixed asset turnover ratio reflects the company's efficient management of its fixed assets to drive revenue growth and maximize returns on investment.