Ziff Davis Inc (ZD)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,406,210 | 1,364,030 | 1,391,000 | 1,416,720 | 1,158,830 |
| Property, plant and equipment | US$ in thousands | 197,216 | 188,169 | 178,184 | 161,209 | 131,524 |
| Fixed asset turnover | 7.13 | 7.25 | 7.81 | 8.79 | 8.81 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,406,210K ÷ $197,216K
= 7.13
The fixed asset turnover ratio is a measure of how efficiently a company is utilizing its fixed assets to generate revenue. For Ziff Davis Inc, the trend in fixed asset turnover from 2020 to 2024 shows slight fluctuations. In 2020 and 2021, the company had a high fixed asset turnover of 8.81 and 8.79 respectively, indicating that for each dollar invested in fixed assets, the company generated $8.81 and $8.79 in revenue.
However, there was a noticeable decrease in the fixed asset turnover ratio in 2022 to 7.81, and a further decline in 2023 to 7.25, suggesting a potential decrease in revenue generation from fixed assets during these years. The trend continued with a ratio of 7.13 in 2024.
Overall, while the fixed asset turnover ratios for Ziff Davis Inc have remained relatively high, the declining trend from 2022 to 2024 may indicate a decrease in efficiency in utilizing fixed assets to generate revenue. Further analysis of the company's operating performance and investment in fixed assets would provide additional insights into the reasons behind these fluctuations.