Shutterstock (SSTK)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	933,431	875,466	826,488	770,112	669,753
Property, plant and equipment	US$ in thousands	66,400	64,300	54,548	48,074	50,906
Fixed asset turnover		14.06	13.62	15.15	16.02	13.16

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $933,431K ÷ $66,400K
= 14.06

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. Based on the data provided, Shutterstock's fixed asset turnover has shown a positive trend over the years, increasing from 13.16 in 2020 to 16.02 in 2021, and then fluctuating between 15.15 and 13.62 in the following years.

A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of investment in fixed assets. The 2021 peak suggests that Shutterstock was able to generate a substantial amount of revenue relative to its fixed asset base that year. The subsequent fluctuations in the ratio may be attributed to changes in the company's revenue generation efficiency or adjustments in its fixed asset base.

Overall, Shutterstock's fixed asset turnover ratio has demonstrated strong operational efficiency, with the company effectively utilizing its fixed assets to drive revenue generation. Further analysis would be beneficial to understand the factors influencing the fluctuations in the ratio in the years following the peak in 2021.