Wingstop Inc (WING)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 625,807 | 460,055 | 357,521 | 282,502 | 248,811 |
| Property, plant and equipment | US$ in thousands | 125,953 | 91,292 | 66,851 | 54,503 | 27,948 |
| Fixed asset turnover | 4.97 | 5.04 | 5.35 | 5.18 | 8.90 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $625,807K ÷ $125,953K
= 4.97
The fixed asset turnover ratio for Wingstop Inc has shown a decreasing trend from 8.90 in December 31, 2020, to 4.97 in December 31, 2024. This indicates that the company's ability to generate revenue from its fixed assets has declined over the years. A higher fixed asset turnover ratio is generally desirable as it suggests efficient utilization of fixed assets to generate sales. The decreasing trend may raise concerns about the company's asset efficiency and operational effectiveness, pointing towards a potential need for further analysis and evaluation of their asset management strategies.
Peer comparison
Dec 31, 2024