Kelly Services A Inc (KELYA)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,834,000	4,948,800	4,905,600	4,506,800	5,355,600
Property, plant and equipment	US$ in thousands	24,600	27,800	35,300	41,000	43,100
Fixed asset turnover		196.50	178.01	138.97	109.92	124.26

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,834,000K ÷ $24,600K
= 196.50

The fixed asset turnover ratio of Kelly Services, Inc. has shown an increasing trend over the past five years. The ratio was 124.26 in December 2019, increased to 110.15 in January 2021, further improved to 139.08 in January 2022, and rose to 178.61 in January 2023. In December 2023, the fixed asset turnover ratio reached its highest point at 196.57.

This indicates that the company is generating more revenue relative to its fixed assets each year, implying better utilization of its fixed assets to generate sales. Higher fixed asset turnover ratios are generally considered favorable as they suggest that the company is efficiently utilizing its assets to generate sales.

Overall, the increasing trend in Kelly Services, Inc.'s fixed asset turnover ratio reflects the company's enhanced efficiency in generating revenue from its fixed assets over the past five years.