Shutterstock (SSTK)

Total 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
Total assets	US$ in thousands	1,309,160	1,036,020	881,184	851,710	729,644
Total asset turnover		0.71	0.85	0.94	0.90	0.92

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $933,431K ÷ $1,309,160K
= 0.71

Total asset turnover is a key financial ratio that measures a company's ability to generate revenue relative to its total assets. In the case of Shutterstock, the trend in total asset turnover shows a slight fluctuation over the years.

As of December 31, 2020, the total asset turnover was 0.92, indicating that for every dollar of total assets, the company generated 0.92 dollars of revenue. The ratio decreased slightly to 0.90 by December 31, 2021, before increasing to 0.94 by December 31, 2022. This suggests that Shutterstock improved its efficiency in utilizing its assets to generate revenue during this period.

However, the ratio dropped to 0.85 by December 31, 2023, and further declined to 0.71 by December 31, 2024. A decreasing total asset turnover can signify potential issues such as underutilized assets or declining revenue generation from the existing asset base.

Overall, Shutterstock's total asset turnover has exhibited variability, with a mix of increases and decreases over the years. It is crucial for the company to maintain a balance in utilizing its assets effectively to maximize revenue generation and ensure long-term financial health.