TechTarget Inc (TTGT)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	246,651	298,349	240,152	148,059	133,266
Property, plant and equipment	US$ in thousands	24,917	22,507	18,720	13,661	12,371
Fixed asset turnover		9.90	13.26	12.83	10.84	10.77

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $246,651K ÷ $24,917K
= 9.90

Techtarget Inc. has shown a fluctuating trend in its fixed asset turnover ratio over the past five years. The ratio has ranged from 9.23 in 2023 to 14.07 in 2021.

A higher fixed asset turnover ratio indicates that the company is generating more revenue relative to its investment in fixed assets. The peak ratio of 14.07 in 2021 suggests that the company efficiently utilized its fixed assets to generate sales during that period.

However, the significant decrease in the fixed asset turnover ratio to 9.23 in 2023 may indicate a decline in efficiency in utilizing fixed assets to generate revenue. It is important for the company to analyze the reasons behind this decrease and take appropriate actions to improve the efficiency of its fixed asset utilization in the future.

Overall, while the company has shown fluctuations in its fixed asset turnover ratio, it is essential for Techtarget Inc. to maintain stable and potentially increasing ratios over time to demonstrate effective utilization of its fixed assets in generating revenue.