Alphabet Inc Class A (GOOGL)

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 measures a company's efficiency in generating sales from its investments in fixed assets, such as property, plant, and equipment. A higher ratio indicates more efficient asset utilization.

Looking at the fixed asset turnover ratio for Alphabet Inc, we can observe a general declining trend over the past eight quarters. The ratio has decreased from 2.51 in Q4 2022 to 2.29 in Q4 2023. This could suggest a decrease in the efficiency of generating sales from the company's fixed assets.

While the ratio fluctuates slightly from quarter to quarter, the overall trend points towards a decline in the efficiency of utilizing fixed assets to generate revenue. This may indicate that Alphabet Inc's investment in fixed assets is not translating into increased sales at the same rate as in previous quarters.

Further analysis of the company's fixed asset management and sales growth strategies would be necessary to understand the reasons behind this declining trend and to assess the potential impact on Alphabet Inc's future financial performance.