Papa John's International Inc (PZZA)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,059,390	2,135,710	2,102,100	2,068,420	1,813,230
Property, plant and equipment	US$ in thousands	—	—	249,793	421,019	200,895
Fixed asset turnover		—	—	8.42	4.91	9.03

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,059,390K ÷ $—K
= —

Fixed asset turnover measures how efficiently a company generates revenue from its fixed assets. Looking at the data provided for Papa John's International Inc, we observe fluctuations in the fixed asset turnover ratio over the years.

- As of December 31, 2020, the fixed asset turnover ratio was 9.03, indicating that the company generated $9.03 in revenue for every dollar invested in fixed assets. This high ratio suggests efficient utilization of fixed assets to generate sales.

- By December 31, 2021, the fixed asset turnover dropped to 4.91. This decrease could signal either a decline in revenue generated by fixed assets or an increase in the value of fixed assets on the balance sheet relative to revenue. Further investigation is needed to understand the underlying factors.

- The ratio rebounded to 8.42 as of December 31, 2022, showing improved efficiency in leveraging fixed assets to drive sales. This increase suggests a positive trend in utilizing fixed assets to generate revenue.

- However, the data for December 31, 2023, and December 31, 2024, is missing, indicated by "—." Without this information, it is challenging to assess the trend in fixed asset turnover for these years.

In conclusion, while the fluctuations in Papa John's fixed asset turnover ratio demonstrate varying efficiency levels in utilizing fixed assets for revenue generation, further analysis would be needed to better understand the underlying reasons for these changes and their implications for the company's operations and financial performance.