Qualys Inc (QLYS)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	554,458	489,723	411,172	362,963	321,607
Property, plant and equipment	US$ in thousands	32,599	47,428	61,854	64,850	60,579
Fixed asset turnover		17.01	10.33	6.65	5.60	5.31

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $554,458K ÷ $32,599K
= 17.01

Qualys Inc's fixed asset turnover has been steadily increasing over the past five years, indicating an improvement in the efficiency of the company's fixed asset utilization. The ratio has grown from 5.31 in 2019 to 17.01 in 2023, suggesting that the company is generating more sales revenue relative to its investment in fixed assets.

A higher fixed asset turnover ratio is generally favorable as it implies that the company is using its fixed assets more efficiently to generate revenue. This could be attributed to operational improvements, better asset management, or increased productivity.

The significant increase in the fixed asset turnover ratio from 2021 to 2023 indicates a substantial improvement in operational efficiency and asset utilization. It suggests that Qualys Inc is effectively leveraging its fixed assets to drive sales, which can enhance profitability and return on investment.

Overall, the trend of increasing fixed asset turnover ratio over the years reflects positively on Qualys Inc's ability to optimize its asset base and generate higher sales relative to its fixed asset investments.