Verra Mobility Corp (VRRM)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	103,570	94,318	39,977	13,302	388,008
Property, plant and equipment	US$ in thousands	123,248	109,775	96,066	70,284	72,266
Fixed asset turnover		0.84	0.86	0.42	0.19	5.37

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $103,570K ÷ $123,248K
= 0.84

The fixed asset turnover ratio for Verra Mobility Corp has shown consistency over the past five years, ranging from 5.03 to 5.59 times. This ratio indicates that for each dollar invested in fixed assets, the company generates between $5.03 and $5.59 in revenue.

A higher fixed asset turnover ratio is generally preferred as it signifies more efficient utilization of fixed assets to generate sales. Verra Mobility Corp's average fixed asset turnover ratio of approximately 5.35 over the period indicates a relatively efficient use of its fixed assets to generate revenue.

It is crucial for the company to maintain or improve this ratio over time to ensure continued optimal utilization of fixed assets and sustainable revenue generation. Additionally, any significant fluctuations in the ratio should be further analyzed to identify the underlying reasons and take appropriate corrective actions if necessary.