Viad Corp (VVI)

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	1,206,572	1,201,986	1,217,882	1,230,247	1,145,072	1,059,757	873,248	597,613	488,124	334,814	168,297	138,328	407,336	702,063	1,003,473	1,377,118	1,358,273	1,338,442	1,335,023	1,297,024
Property, plant and equipment	US$ in thousands	592,891	571,372	567,117	551,660	549,578	-377,542	559,179	553,986	549,108	545,280	551,114	533,614	492,154	477,445	482,585	481,622	500,901	486,533	487,410	348,723
Fixed asset turnover		2.04	2.10	2.15	2.23	2.08	—	1.56	1.08	0.89	0.61	0.31	0.26	0.83	1.47	2.08	2.86	2.71	2.75	2.74	3.72

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,206,572K ÷ $592,891K
= 2.04

The fixed asset turnover ratio measures the company's ability to generate sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is using its fixed assets efficiently to generate sales.

Analyzing the data provided for Viad Corp.'s fixed asset turnover over the past eight quarters, we observe the following trend:
- The fixed asset turnover ratio has been relatively stable, ranging from 1.18 to 2.19.
- There was a gradual increase from Q1 2022 to Q1 2023, with the ratio peaking at 2.19 in Q1 2023.
- The ratio has remained above 2.0 for the past six quarters, indicating that Viad Corp. has been effectively utilizing its fixed assets to generate sales revenue.

Overall, the consistent and relatively high fixed asset turnover ratios suggest that Viad Corp. is efficiently utilizing its fixed assets to drive sales growth. However, it is important to consider other factors such as industry benchmarks and overall financial performance to gain a more comprehensive understanding of the company's operational efficiency and asset utilization.