VeriSign Inc (VRSN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,493,100 | 1,424,900 | 1,327,600 | 1,265,100 | 1,231,660 |
| Property, plant and equipment | US$ in thousands | 233,200 | 232,000 | 251,200 | 245,571 | 250,283 |
| Fixed asset turnover | 6.40 | 6.14 | 5.29 | 5.15 | 4.92 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,493,100K ÷ $233,200K
= 6.40
Verisign Inc.'s fixed asset turnover ratio has shown a consistent upward trend over the past five years, indicating an improvement in the company's ability to generate revenue from its investment in fixed assets. The ratio has increased from 4.92 in 2019 to 6.40 in 2023. This signifies that for every dollar invested in fixed assets, Verisign Inc. was able to generate $6.40 in sales in 2023, up from $4.92 in 2019.
The increasing trend in fixed asset turnover suggests that Verisign Inc. has been effectively utilizing its fixed assets to drive revenue growth. A higher fixed asset turnover ratio indicates that the company is operating more efficiently and able to generate more sales relative to its investment in fixed assets.
Overall, the improvement in Verisign Inc.'s fixed asset turnover ratio reflects positively on the company's operational efficiency and ability to leverage its fixed assets to generate revenue.
Peer comparison
Dec 31, 2023