Green Brick Partners Inc (GRBK)

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	1,777,710	1,758,417	1,747,383	1,816,238	1,757,793	1,778,955	1,713,351	1,562,013	1,402,876	1,204,725	1,138,206	997,233	976,021	952,043	885,626	836,299	791,660	746,658	689,306	663,112
Property, plant and equipment	US$ in thousands	7,054	5,402	4,375	3,913	2,919	2,894	2,761	2,617	2,812	3,172	3,712	3,506	3,595	3,620	3,994	4,743	4,309	4,192	4,261	4,464
Fixed asset turnover		252.01	325.51	399.40	464.15	602.19	614.70	620.55	596.87	498.89	379.80	306.63	284.44	271.49	263.00	221.74	176.32	183.72	178.11	161.77	148.55

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,777,710K ÷ $7,054K
= 252.01

Fixed asset turnover is a financial ratio that measures a company's ability to generate sales using its fixed assets efficiently. The ratio is calculated by dividing net sales by average fixed assets. A higher fixed asset turnover ratio indicates that the company is generating more sales for each dollar invested in fixed assets.

Analyzing Green Brick Partners Inc's fixed asset turnover over the past eight quarters shows a decreasing trend from Q1 2023 to Q4 2022. The ratio has steadily declined from 464.15 in Q1 2023 to 602.19 in Q4 2022. This may indicate that the company's fixed assets are becoming less productive in generating sales over time.

Despite the decreasing trend, Green Brick Partners Inc's fixed asset turnover remains relatively high, ranging from 252.01 to 620.55 over the analyzed quarters. This suggests that the company is efficiently utilizing its fixed assets to generate sales compared to its industry peers.

It is important for Green Brick Partners Inc to closely monitor its fixed asset turnover ratio to ensure that its fixed assets are utilized optimally. The company may need to assess its investment in fixed assets and explore ways to improve efficiency in generating sales from these assets to maintain sustainable growth and profitability in the long term.