Alphabet Inc Class A (GOOGL)
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 ratio for Alphabet Inc Class A has shown fluctuations over the past five years.
On December 31, 2020, the ratio was 2.15, indicating that the company generated $2.15 in revenue for every dollar invested in fixed assets. Subsequently, the ratio increased to 2.64 by December 31, 2021, reflecting an improvement in efficiency in utilizing fixed assets to generate sales.
By December 31, 2022, the fixed asset turnover ratio decreased to 2.50, suggesting a slight decline in efficiency in generating revenue from fixed assets compared to the previous year. This trend continued as the ratio further decreased to 2.27 by December 31, 2023, indicating a potential challenge in asset utilization efficiency.
However, by December 31, 2024, the fixed asset turnover ratio dropped to 2.04, showing a significant decrease in efficiency in generating sales from fixed assets. This decline may raise concerns about the company's ability to maximize the utilization of its fixed assets to drive revenue growth.
In conclusion, the fluctuating trend in Alphabet Inc Class A's fixed asset turnover ratio highlights the importance of continuously monitoring and optimizing the efficiency of utilizing fixed assets to enhance overall business performance.
Peer comparison
Dec 31, 2024