Ziff Davis Inc (ZD)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,364,030 | 1,391,000 | 1,416,720 | 1,158,830 | 1,050,460 |
| Property, plant and equipment | US$ in thousands | 188,169 | 178,184 | 161,209 | 131,524 | 127,817 |
| Fixed asset turnover | 7.25 | 7.81 | 8.79 | 8.81 | 8.22 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,364,030K ÷ $188,169K
= 7.25
The fixed asset turnover ratio for Ziff Davis Inc has shown a declining trend over the past five years, decreasing from 10.73 in 2019 to 7.25 in 2023. This indicates that the company generated less revenue from its fixed assets in 2023 compared to previous years. A lower fixed asset turnover ratio may suggest inefficiency in utilizing fixed assets to generate sales. It could imply that the company's fixed assets are not being used effectively to drive revenue, which could potentially lead to lower profitability. Further investigation into the company's operational efficiency and asset utilization may be required to address the declining trend in fixed asset turnover.