Viad Corp (VVI)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,206,610	1,135,550	488,274	412,106	1,358,970
Property, plant and equipment	US$ in thousands	592,891	549,578	549,108	492,154	500,901
Fixed asset turnover		2.04	2.07	0.89	0.84	2.71

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,206,610K ÷ $592,891K
= 2.04

Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its investment in fixed assets. A higher fixed asset turnover indicates that the company is more efficient in utilizing its fixed assets to generate revenue.

Viad Corp.'s fixed asset turnover has fluctuated over the past five years. In 2019, the company had a high fixed asset turnover of 2.74, indicating that it generated $2.74 in sales for every dollar invested in fixed assets. This suggests efficient utilization of fixed assets to drive revenue.

However, in 2020 and 2021, Viad Corp.'s fixed asset turnover decreased to 0.84 and 0.92, respectively, indicating a decline in efficiency in generating revenue from fixed assets. This could be a cause for concern as it suggests that the company may not be effectively utilizing its fixed assets to drive sales.

In 2022 and 2023, there was a slight improvement in Viad Corp.'s fixed asset turnover to 2.05 and 2.09, respectively. This indicates that the company was able to increase its revenue generated from fixed assets.

Overall, Viad Corp.'s fixed asset turnover has shown variability over the past five years, with a mix of efficient and inefficient utilization of fixed assets to generate revenue. It is important for the company to consistently monitor and improve its fixed asset turnover to ensure optimal performance and profitability.