Manhattan Associates Inc (MANH)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,049,306	1,029,374	1,001,134	966,832	932,473	886,637	846,297	807,205	766,825	740,588	711,672	685,862	663,650	639,619	620,191	589,707	587,495	593,342	605,860	624,571
Property, plant and equipment	US$ in thousands	13,971	12,809	13,392	12,684	11,795	11,266	11,754	12,049	12,803	12,265	12,343	13,218	13,889	14,272	15,115	16,484	17,903	17,930	19,458	21,189
Fixed asset turnover		75.11	80.36	74.76	76.22	79.06	78.70	72.00	66.99	59.89	60.38	57.66	51.89	47.78	44.82	41.03	35.77	32.82	33.09	31.14	29.48

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,049,306K ÷ $13,971K
= 75.11

Manhattan Associates Inc's fixed asset turnover ratio has been showing an increasing trend over the past few years. The ratio increased from 29.48 in March 2020 to 74.76 in June 2024.

This indicates that the company is generating more revenue relative to its investment in fixed assets, reflecting efficient utilization of its fixed assets to generate sales.

The steady increase in the fixed asset turnover ratio suggests that Manhattan Associates Inc is effectively managing and utilizing its fixed assets to drive sales growth and improve overall operational efficiency.

However, the ratio slightly decreased in the last quarter of 2024 to 75.11, which may warrant further investigation to understand any potential changes in the company's asset utilization or revenue generation strategies during that period.

Overall, the upward trend in the fixed asset turnover ratio is a positive indicator of Manhattan Associates Inc's operational performance and efficient use of its fixed assets.