Alphabet Inc Class C (GOOG)

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	305,445,000	294,667,000	287,780,000	283,140,000	281,513,000	282,362,000	277,870,000	270,007,000	257,262,000	238,240,000	219,442,000	195,859,000	181,704,000	171,155,000	165,528,000	166,276,000	161,456,000	155,163,000	148,400,000	142,012,000
Property, plant and equipment	US$ in thousands	134,345,000	125,705,000	121,208,000	117,560,000	112,668,000	108,363,000	106,223,000	104,218,000	97,599,000	94,631,000	91,697,000	87,606,000	84,749,000	81,636,000	78,748,000	87,966,000	73,646,000	69,252,000	64,891,000	60,528,000
Fixed asset turnover		2.27	2.34	2.37	2.41	2.50	2.61	2.62	2.59	2.64	2.52	2.39	2.24	2.14	2.10	2.10	1.89	2.19	2.24	2.29	2.35

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $305,445,000K ÷ $134,345,000K
= 2.27

The fixed asset turnover ratio for Alphabet Inc has been relatively stable over the past eight quarters, ranging from 2.29 to 2.62. This ratio measures how efficiently the company generates revenue from its fixed assets, with higher values indicating better utilization of these assets.

The trend over the analyzed period shows a slight decline in the fixed asset turnover ratio, from 2.62 in Q3 2022 to 2.29 in Q4 2023. This decrease may suggest a decrease in revenue generated relative to the investment in fixed assets. However, it is important to note that a fixed asset turnover ratio of over 2 indicates that Alphabet Inc is effectively using its fixed assets to generate revenue.

Overall, Alphabet Inc's fixed asset turnover indicates that the company has been efficiently utilizing its fixed assets to generate revenue, although there has been a downward trend in recent quarters. Further analysis may be needed to understand the underlying reasons for this trend and its potential impact on the company's financial performance.