TechTarget Inc (TTGT)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	246,651	261,716	274,067	290,615	298,349	277,902	270,151	255,484	240,152	231,041	197,824	169,385	148,059	138,065	135,130	134,377	133,265	128,516	125,496	122,291
Property, plant and equipment	US$ in thousands	24,917	24,411	24,062	23,271	22,507	21,833	20,903	19,942	18,720	17,467	16,453	15,191	13,661	13,088	12,951	12,639	12,371	12,121	12,001	11,627
Fixed asset turnover		9.90	10.72	11.39	12.49	13.26	12.73	12.92	12.81	12.83	13.23	12.02	11.15	10.84	10.55	10.43	10.63	10.77	10.60	10.46	10.52

December 31, 2023 calculation

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

The fixed asset turnover ratio of Techtarget Inc. has shown a declining trend over the past several quarters. The ratio decreased from 13.22 in Q4 2022 to 9.23 in Q4 2023. This indicates that the company generated less revenue for each dollar invested in fixed assets in Q4 2023 compared to the previous quarter.

The company experienced a gradual decline in fixed asset turnover, reaching its lowest point in Q4 2023. This could suggest that Techtarget Inc. may be facing challenges in efficiently utilizing its fixed assets to generate revenue. It is essential for the company to closely monitor and improve its asset utilization efficiency to enhance profitability and long-term sustainability.

Overall, the decreasing trend in fixed asset turnover for Techtarget Inc. signals a need for management to evaluate and potentially optimize the utilization of its fixed assets to drive higher revenue generation in the future.