Pegasystems Inc (PEGA)

Fixed asset turnover

		Mar 31, 2025	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
Revenue (ttm)	US$ in thousands	1,642,666	1,497,180	1,480,583	1,490,176	1,437,291	1,432,616	1,354,853	1,290,941	1,267,010	1,317,845	1,237,559	1,223,096	1,274,461	1,211,653	1,194,069	1,163,752	1,065,425	1,017,517	995,459	986,211
Property, plant and equipment	US$ in thousands	—	—	—	—	—	—	—	—	—	131,170	125,513	115,532	115,815	114,358	91,349	51,058	44,330	108,049	—	—
Fixed asset turnover		—	—	—	—	—	—	—	—	—	10.05	9.86	10.59	11.00	10.60	13.07	22.79	24.03	9.42	—	—

March 31, 2025 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,642,666K ÷ $—K
= —

The fixed asset turnover ratio of Pegasystems Inc. exhibits notable variability across the observed periods. During the fiscal year ending December 31, 2020, the ratio was reported at 9.42, indicating the efficiency with which the company's fixed assets generated revenue at that time. Subsequently, there was a significant increase in this ratio, reaching 24.03 in the quarter ending March 31, 2021, suggesting an improvement in asset utilization and revenue generation relative to the company’s fixed assets. This elevated level persisted into June 30, 2021, at 22.79, before declining to 13.07 in September 2021 and further decreasing to 10.60 by December 31, 2021. The ratio remained relatively stable in the subsequent quarters, with values around 11.00 in March 2022, 10.59 in June 2022, and just below 10 in September 2022 (9.86), before slightly increasing to 10.05 in December 2022.

The data for subsequent periods, from March 2023 onwards, is unavailable, indicating no reported fixed asset turnover ratios for these dates. The historical trend suggests a peak in efficiency during the early months of 2021, followed by a decline and stabilization at a lower level into late 2022. This pattern may reflect changes in asset base management, operational scale, or revenue generation efficiency over this period. The overall trajectory indicates that Pegasystems' ability to generate revenue per unit of fixed assets was significantly higher in early 2021 but has since normalized to a more moderate level, aligning with typical industry performance and internal asset management strategies.

In summary, the fixed asset turnover ratio experienced a transient period of heightened efficiency in early 2021, with subsequent stabilization at lower levels, reflecting shifts in operational efficiency and asset utilization over the analyzed timeframe.