Manhattan Associates Inc (MANH)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	932,692	769,284	664,197	585,552	619,801
Property, plant and equipment	US$ in thousands	11,795	12,803	13,889	17,903	22,725
Fixed asset turnover		79.08	60.09	47.82	32.71	27.27

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $932,692K ÷ $11,795K
= 79.08

Manhattan Associates, Inc.'s fixed asset turnover has been showing a consistent trend of improvement over the past five years. The fixed asset turnover ratio measures how effectively the company generates sales revenue from its investments in fixed assets.

The gradual increase in the fixed asset turnover ratio from 27.19 in 2019 to 78.74 in 2023 indicates that Manhattan Associates has been utilizing its fixed assets more efficiently to generate revenue. This trend suggests that the company has been able to maximize the productivity and utilization of its fixed assets over the years.

A higher fixed asset turnover ratio generally reflects better operational efficiency and asset utilization, as the company is generating more revenue per dollar invested in fixed assets. Manhattan Associates' improving fixed asset turnover ratio indicates that the company has been effectively managing its fixed assets to drive sales and improve overall operational performance.