Chuy's Holdings Inc (CHUY)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	461,310	422,215	396,467	320,952	426,357
Property, plant and equipment	US$ in thousands	201,928	185,956	179,369	185,105	210,750
Fixed asset turnover		2.28	2.27	2.21	1.73	2.02

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $461,310K ÷ $201,928K
= 2.28

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. The trend analysis of Chuy's Holdings Inc's fixed asset turnover over the past five years shows a generally positive trajectory indicating an improvement in the company's ability to generate sales relative to its investment in fixed assets.

From 2019 to 2023, the fixed asset turnover ratio increased from 2.02 to 2.28. This suggests that Chuy's Holdings Inc has been able to generate more revenue per dollar invested in fixed assets over this period. A higher fixed asset turnover ratio is generally considered favorable as it indicates that the company is operating more efficiently and effectively utilizing its assets to generate sales.

The relatively consistent increase in the fixed asset turnover ratio from 2020 to 2023 indicates that Chuy's Holdings Inc has been successful in optimizing the utilization of its fixed assets to drive revenue growth. This improvement may be attributed to better operational management, strategic investments, or improvements in production efficiency.

Overall, the trend of increasing fixed asset turnover for Chuy's Holdings Inc implies that the company is becoming more efficient in generating sales from its fixed asset base, which could positively impact its profitability and overall financial performance in the long term.