Papa John's International Inc (PZZA)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	2,144,971	2,075,826	2,064,226	2,072,661	2,085,404	2,110,754	2,110,024	2,099,367	2,068,421	2,009,347	1,969,506	1,915,121	1,813,234	1,760,937	1,691,702	1,630,702	1,619,248	1,599,300	1,580,825	1,611,154
Property, plant and equipment	US$ in thousands	282,812	268,087	264,393	253,144	249,793	230,894	225,382	216,253	223,856	209,072	198,818	195,083	200,895	199,291	200,581	205,035	211,741	212,313	212,257	217,437
Fixed asset turnover		7.58	7.74	7.81	8.19	8.35	9.14	9.36	9.71	9.24	9.61	9.91	9.82	9.03	8.84	8.43	7.95	7.65	7.53	7.45	7.41

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,144,971K ÷ $282,812K
= 7.58

Papa John`s International, Inc. has maintained a relatively stable fixed asset turnover over the past eight quarters, with values ranging from 7.55 to 9.71. The fixed asset turnover measures the efficiency of the company in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover indicates that the company is utilizing its fixed assets more effectively to generate sales.

The decreasing trend in fixed asset turnover from Q1 2022 to Q4 2023 may suggest that the company has been less efficient in utilizing its fixed assets to generate sales revenue over this period. However, it is essential to consider other factors such as changes in business operations or capital expenditures that may have influenced these ratios. Overall, a fixed asset turnover ranging from 7.55 to 9.71 demonstrates that Papa John`s is adept at generating sales relative to its investment in fixed assets.