Alphabet Inc Class A (GOOGL)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	305,559,000	281,279,000	257,637,000	182,527,000	161,857,000
Property, plant and equipment	US$ in thousands	134,345,000	112,668,000	97,599,000	84,749,000	73,646,000
Fixed asset turnover		2.27	2.50	2.64	2.15	2.20

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $305,559,000K ÷ $134,345,000K
= 2.27

The fixed asset turnover ratio for Alphabet Inc has shown fluctuations over the past five years. In 2023, the ratio stood at 2.29, down from 2.51 in 2022, and 2.64 in 2021. This decline suggests a decrease in the company's efficiency in generating revenue from its fixed assets. However, the 2023 ratio still indicates that the company was able to generate $2.29 in revenue for every dollar invested in fixed assets. It is essential to investigate the underlying factors contributing to this trend to assess the company's utilization of its fixed assets effectively.