Godaddy Inc (GDDY)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,111,400	3,961,000	3,694,000	3,228,400	2,884,200
Property, plant and equipment	US$ in thousands	185,300	225,600	220,000	257,300	258,600
Fixed asset turnover		22.19	17.56	16.79	12.55	11.15

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,111,400K ÷ $185,300K
= 22.19

Fixed asset turnover is a key efficiency ratio that helps assess how effectively a company is utilizing its fixed assets to generate revenue. In the case of Godaddy Inc, the trend in fixed asset turnover has been consistently increasing over the past five years. The ratio has improved from 11.55 in 2019 to 22.96 in 2023, indicating that the company is generating significantly more revenue per dollar of investment in fixed assets.

This improvement suggests that Godaddy Inc has been able to enhance its operational efficiency and optimize the utilization of its fixed assets over the years. A higher fixed asset turnover is generally seen as a positive sign, as it reflects that the company is maximizing the productivity of its fixed assets to drive sales and revenue growth.

Overall, the increasing trend in Godaddy Inc's fixed asset turnover ratio indicates a positive operational performance and efficient utilization of fixed assets to support the company's revenue generation activities. It suggests that management is effectively managing and deploying its fixed assets to generate higher sales, which is a favorable indicator for potential investors and stakeholders.