Papa John's International Inc (PZZA)

Total 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
Total assets	US$ in thousands	875,005	864,227	885,704	872,770	730,721
Total asset turnover		2.45	2.42	2.34	2.08	2.22

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $2,145,070K ÷ $875,005K
= 2.45

Papa John's International, Inc. has demonstrated strong efficiency in utilizing its assets to generate revenue over the past five years, as evidenced by its total asset turnover ratios. The company's total asset turnover has shown a consistent upward trend, increasing from 2.22 in 2019 to 2.44 in 2023. This indicates that Papa John's has been increasingly effective in generating sales relative to the value of its total assets.

A total asset turnover ratio of 2.44 in 2023 implies that for every dollar of assets the company holds, it generates $2.44 in revenue. This indicates that Papa John's is efficiently deploying its assets to drive sales growth. The company's ability to maintain a total asset turnover above 2.0 over the five-year period signifies effective asset management and operational efficiency.

Overall, the increasing trend in Papa John's total asset turnover ratio reflects the company's ability to optimize its asset utilization and generate revenue efficiently, which bodes well for its financial performance and operational effectiveness.