Wingstop Inc (WING)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	460,055	357,521	282,502	248,811	199,676
Property, plant and equipment	US$ in thousands	91,292	66,851	54,503	27,948	27,842
Fixed asset turnover		5.04	5.35	5.18	8.90	7.17

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $460,055K ÷ $91,292K
= 5.04

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue relative to its investment in fixed assets. In the case of Wingstop Inc, the trend in fixed asset turnover over the past five years shows some fluctuations.

In 2023, Wingstop Inc's fixed asset turnover ratio decreased to 5.04 compared to 5.35 in 2022, indicating a slight decrease in the company's efficiency in utilizing its fixed assets to generate sales. However, the ratio still remains relatively high, suggesting that Wingstop Inc is efficient in generating revenue from its investment in fixed assets.

When compared to the ratios from 2021 and earlier, Wingstop Inc's fixed asset turnover in 2023 is lower. This could be an indication of changes in the company's operations, such as increased investment in fixed assets without a proportional increase in revenue generation.

Overall, while there has been a slight decrease in fixed asset turnover for Wingstop Inc in 2023, the company still exhibits efficient utilization of its fixed assets to generate sales revenue. It would be important for investors and analysts to further investigate the reasons behind this trend to assess the company's operational efficiency and financial performance.