Cars.com Inc (CARS)

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	658,830	645,165	634,703	628,503	618,556	607,735	598,672	590,537	584,954	589,024	575,606	524,000	521,274	520,453	531,218	577,629	583,693	595,852	613,781	634,454
Property, plant and equipment	US$ in thousands	43,853	44,005	45,201	45,692	45,218	45,403	43,529	42,949	43,005	46,194	46,450	43,479	41,323	41,072	40,674	43,782	43,696	42,857	40,981	40,548
Fixed asset turnover		15.02	14.66	14.04	13.76	13.68	13.39	13.75	13.75	13.60	12.75	12.39	12.05	12.61	12.67	13.06	13.19	13.36	13.90	14.98	15.65

December 31, 2023 calculation

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

Fixed asset turnover is a financial ratio that measures how efficiently a company is generating revenue from its fixed assets. It is calculated by dividing net revenue by average fixed assets. A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate sales.

Cars.com's fixed asset turnover has been consistently strong and increasing over the past eight quarters, ranging from 14.46 to 15.72. This suggests that the company is effectively utilizing its fixed assets to generate revenue. The uptrend in the ratio indicates that Cars.com is progressively becoming more efficient in utilizing its fixed assets to drive sales.

The average fixed asset turnover for the past eight quarters is approximately 14.84, indicating that on average, for every dollar invested in fixed assets, the company is generating $14.84 in revenue. This suggests that Cars.com is effectively optimizing its fixed asset base to support its revenue generation activities.

Overall, the trend of increasing fixed asset turnover reflects positively on Cars.com's operational efficiency and ability to generate revenue from its fixed assets. It signifies effective management of assets to drive sales growth and maximize returns for shareholders.