Alphabet Inc Class C (GOOG)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	348,963,000	305,559,000	281,279,000	257,637,000	182,527,000
Property, plant and equipment	US$ in thousands	171,036,000	134,345,000	112,668,000	97,599,000	84,749,000
Fixed asset turnover		2.04	2.27	2.50	2.64	2.15

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $348,963,000K ÷ $171,036,000K
= 2.04

The fixed asset turnover of Alphabet Inc Class C has shown a generally positive trend over the past five years, starting at 2.15 in December 31, 2020, increasing to 2.64 in December 31, 2021, and then fluctuating between 2.50 and 2.04 in subsequent years.

A fixed asset turnover ratio above 1 indicates that the company is generating more revenue per dollar of fixed assets, which is a positive sign of efficiency. This upward trend in fixed asset turnover suggests that Alphabet Inc Class C has been able to utilize its fixed assets more effectively to generate revenue over time.

However, the slight fluctuations in the ratio in the later years could indicate some variability in how efficiently the company is using its fixed assets to generate revenue. It would be important for Alphabet Inc to closely monitor and manage its fixed asset turnover to ensure continued efficiency in its operations and maximize profitability.