Innoviva Inc (INVA)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	291,306	294,888	372,796	318,463	242,036
Property, plant and equipment	US$ in thousands	483	170	12	28	33
Fixed asset turnover		603.12	1,734.64	31,066.33	11,373.68	7,334.42

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $291,306K ÷ $483K
= 603.12

The fixed asset turnover ratio measures how effectively a company is utilizing its fixed assets to generate revenue. Innoviva Inc's fixed asset turnover has fluctuated significantly over the past five years, indicating varying levels of efficiency in using its fixed assets.

In 2019, the fixed asset turnover was 7,909.58, which means that for every dollar of fixed assets, the company generated $7,909.58 of revenue. This was a relatively high level of efficiency in asset utilization.

In 2020, the fixed asset turnover decreased to 12,028.36, indicating a decrease in efficiency compared to the previous year. This suggests that the company may have experienced challenges in optimizing its fixed asset utilization to generate revenue.

The fixed asset turnover ratio surged to 32,655.50 in 2021, a substantial increase from the previous year. This significant increase suggests that the company significantly improved its efficiency in utilizing fixed assets to generate revenue.

In 2022, the fixed asset turnover dropped to 1,949.05, indicating a sharp decline in efficiency compared to the previous year. This may suggest that the company faced challenges in effectively utilizing its fixed assets during that period.

The latest ratio in 2023 of 642.78 shows a further decrease in efficiency. This decline may indicate ongoing challenges in optimizing the company's fixed asset utilization to drive revenue growth.

Overall, the fluctuating trend in Innoviva Inc's fixed asset turnover over the past five years suggests varying levels of efficiency in utilizing fixed assets to generate revenue. Further analysis of the company's operational and investment strategies may be warranted to understand the factors contributing to these fluctuations.