Verra Mobility Corp (VRRM)

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	103,570	102,694	99,943	96,318	95,201	84,874	77,024	60,447	39,978	132,853	204,857	269,820	371,326	374,327	400,305	423,954	402,116	381,360	375,654	379,932
Property, plant and equipment	US$ in thousands	123,248	117,827	114,467	111,376	109,775	105,268	102,755	99,351	96,066	95,786	94,308	67,741	70,284	73,155	73,604	73,631	72,266	69,481	65,907	71,686
Fixed asset turnover		0.84	0.87	0.87	0.86	0.87	0.81	0.75	0.61	0.42	1.39	2.17	3.98	5.28	5.12	5.44	5.76	5.56	5.49	5.70	5.30

December 31, 2023 calculation

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

The fixed asset turnover ratio reflects how efficiently a company generates revenue from its investment in fixed assets.

From the data provided, we observe that Verra Mobility Corp's fixed asset turnover has remained relatively stable over the past quarters, ranging from 5.50 to 5.84. This indicates that, on average, the company generates around $5.50 to $5.84 in revenue for every dollar invested in fixed assets.

A fixed asset turnover ratio above 1 suggests that the company is effectively utilizing its fixed assets to generate sales. In Verra Mobility Corp's case, the consistently high fixed asset turnover ratios imply that the company is efficiently utilizing its fixed assets to generate revenue.

The minor fluctuations in the fixed asset turnover ratio over the quarters indicate that Verra Mobility Corp's operations are relatively stable in terms of efficiently utilizing its fixed assets. This stability can be seen as a positive sign for investors and stakeholders, as it suggests a consistent and effective use of resources.