Papa John's International Inc (PZZA)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,145,070	2,088,400	2,068,420	1,813,230	1,619,250
Property, plant and equipment	US$ in thousands	282,812	249,793	223,856	200,895	211,741
Fixed asset turnover		7.58	8.36	9.24	9.03	7.65

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,145,070K ÷ $282,812K
= 7.58

Papa John's International, Inc. has exhibited varying trends in its fixed asset turnover ratio over the past five years. The fixed asset turnover ratio measures the efficiency at which the company generates sales revenue relative to its investment in fixed assets.

The ratio has decreased from 9.24 in 2021 to 7.55 in 2023, indicating a decline in the company's ability to generate sales from its fixed assets. This decrease may suggest that Papa John's is not effectively utilizing its fixed assets to drive revenue growth.

Despite the decrease in 2023, the company's fixed asset turnover ratio remains relatively high compared to previous years, with ratios consistently above 7 over the five-year period. This could imply that Papa John's has historically been efficient in utilizing its fixed assets to generate sales.

However, the downward trend in the fixed asset turnover ratio raises concerns about whether Papa John's is efficiently managing its fixed assets to maximize revenue generation. Further analysis of the company's asset management efficiency and strategies to improve the utilization of fixed assets may be warranted to enhance overall operational performance.