ManpowerGroup Inc (MAN)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	18,811,700	19,764,800	20,680,400	17,952,800	20,892,800
Property, plant and equipment	US$ in thousands	129,900	112,200	116,800	135,100	143,300
Fixed asset turnover		144.82	176.16	177.06	132.89	145.80

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $18,811,700K ÷ $129,900K
= 144.82

Fixed asset turnover measures how efficiently a company generates revenue from its fixed assets. ManpowerGroup's fixed asset turnover has fluctuated over the past five years, ranging from 133.24 to 177.43. A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate sales.

In 2023, the fixed asset turnover decreased to 145.61 from 176.72 in 2022, indicating a decline in the efficiency of utilizing fixed assets to generate revenue. However, despite the decrease, the ratio remains relatively high, suggesting that ManpowerGroup continues to effectively leverage its fixed assets to generate sales.

Over the five-year period, ManpowerGroup has demonstrated overall consistency in efficiently utilizing its fixed assets to drive revenue generation. It is essential for the company to closely monitor this ratio to ensure optimal utilization of its fixed assets and maintain efficiency in its operations.