Dine Brands Global Inc (DIN)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	831,068	909,400	896,167	689,300	910,178
Property, plant and equipment	US$ in thousands	161,891	145,277	179,411	187,977	216,420
Fixed asset turnover		5.13	6.26	5.00	3.67	4.21

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $831,068K ÷ $161,891K
= 5.13

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investments in fixed assets. The trend of Dine Brands Global Inc's fixed asset turnover over the past five years shows fluctuations.

In 2023, the fixed asset turnover ratio was 5.13, indicating that the company generated $5.13 in revenue for every dollar invested in fixed assets during the period. This represents a decrease from the previous year's ratio of 6.26, suggesting a decline in efficiency in utilizing fixed assets to generate sales.

The highest ratio in the time series was recorded in 2022 at 6.26, reflecting a peak performance in leveraging fixed assets to drive revenue. This was followed by a lower ratio of 5.00 in 2021, showing a slight decrease in asset turnover efficiency compared to the previous year.

In 2020, the fixed asset turnover ratio was 3.67, which was the lowest among the five years presented. This implies that the company struggled to generate sales relative to its investment in fixed assets during that year. The ratio improved in 2019 to 4.21, indicating a recovery in asset utilization efficiency compared to the previous year.

Overall, the fluctuations in Dine Brands Global Inc's fixed asset turnover signal varying levels of effectiveness in utilizing fixed assets to generate revenue over the years. Investors and stakeholders may consider these trends when evaluating the company's operational efficiency and asset management strategies.