ManpowerGroup Inc (MAN)

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	18,813,000	18,997,000	19,134,800	19,366,000	19,762,200	20,347,600	20,690,800	20,895,400	20,680,400	20,363,000	19,806,800	18,271,300	17,964,500	18,106,200	18,765,700	20,396,800	20,823,700	21,020,300	26,617,800	32,562,200
Property, plant and equipment	US$ in thousands	129,900	119,600	116,300	110,400	112,200	104,400	110,000	113,400	116,800	118,800	123,000	126,600	135,100	132,500	136,400	138,400	143,300	140,000	147,700	146,400
Fixed asset turnover		144.83	158.84	164.53	175.42	176.13	194.90	188.10	184.26	177.06	171.41	161.03	144.32	132.97	136.65	137.58	147.38	145.32	150.14	180.22	222.42

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $18,813,000K ÷ $129,900K
= 144.83

ManpowerGroup's fixed asset turnover has shown a consistent decreasing trend over the past eight quarters, declining from 195.41 in Q3 2022 to 145.61 in Q4 2023. This indicates that the company generated $145.61 in sales for every dollar invested in fixed assets in the most recent quarter.

The decreasing trend in fixed asset turnover may suggest inefficiencies in utilizing fixed assets to generate revenue or a slower rate of sales growth relative to the growth in fixed assets. This could be a cause for concern as it may indicate underutilization of assets or potential overinvestment in fixed assets compared to the company's sales volume.

It's important for ManpowerGroup to analyze the reasons behind the declining fixed asset turnover and consider implementing strategies to improve asset utilization efficiency, such as optimizing production processes, increasing sales, or reevaluating the company's asset investments.