Jack In The Box Inc (JACK)

Fixed asset turnover

		Jan 21, 2024	Sep 30, 2023	Jul 9, 2023	Apr 16, 2023	Jan 22, 2023	Sep 30, 2022	Jul 10, 2022	Apr 17, 2022	Jan 23, 2022	Sep 30, 2021	Jun 30, 2021	Apr 11, 2021	Jan 17, 2021	Sep 30, 2020	Jul 5, 2020	Apr 12, 2020	Jan 19, 2020	Sep 30, 2019	Jul 7, 2019	Apr 14, 2019
Revenue (ttm)	US$ in thousands	1,652,708	1,692,306	1,722,555	1,723,918	1,650,468	1,468,083	1,343,764	1,214,917	1,149,840	1,143,670	1,120,617	1,093,434	1,052,374	1,021,506	987,340	967,424	966,994	950,107	906,344	871,968
Property, plant and equipment	US$ in thousands	415,948	412,030	414,949	419,904	424,638	418,164	441,639	463,124	314,643	322,914	331,449	332,014	328,181	335,982	344,126	356,221	361,505	391,934	389,938	398,603
Fixed asset turnover		3.97	4.11	4.15	4.11	3.89	3.51	3.04	2.62	3.65	3.54	3.38	3.29	3.21	3.04	2.87	2.72	2.67	2.42	2.32	2.19

January 21, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,652,708K ÷ $415,948K
= 3.97

Jack In The Box, Inc.'s fixed asset turnover has shown a generally increasing trend over the past eight quarters. The fixed asset turnover ratio measures how efficiently the company is generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more efficiently to generate sales.

In Q1 2023, the fixed asset turnover ratio was 3.89, indicating that for every dollar invested in fixed assets, the company generated $3.89 in sales. The ratio improved in Q2 2023 to 4.11, peaked at 4.15 in Q3 2023, and then slightly decreased to 4.11 in Q4 2023. This indicates that the company was able to generate more sales revenue relative to its fixed asset base in these quarters.

The trend continued in Q1 2024, with the fixed asset turnover ratio reaching 3.97. Despite the slight decrease from the previous quarter, the ratio remains relatively high, indicating that Jack In The Box, Inc. is still effectively utilizing its fixed assets to drive sales. Overall, the improving trend in fixed asset turnover suggests that the company has been making efficient use of its fixed assets to generate revenue in recent quarters.