Ziff Davis Inc (ZD)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,400,439 | 1,373,201 | 1,360,606 | 1,365,822 | 1,364,028 | 1,370,843 | 1,371,731 | 1,383,071 | 1,390,997 | 1,402,925 | 1,416,196 | 1,420,133 | 1,416,722 | 1,392,149 | 1,310,017 | 1,219,080 | 1,158,829 | 1,180,362 | 1,251,491 | 1,323,567 |
| Property, plant and equipment | US$ in thousands | 197,216 | 197,482 | 192,278 | 190,897 | 188,169 | 186,165 | 192,380 | 187,025 | 178,184 | 171,181 | 166,152 | 160,399 | 161,209 | 183,179 | 171,645 | 155,799 | 131,524 | 147,268 | 144,494 | 136,439 |
| Fixed asset turnover | 7.10 | 6.95 | 7.08 | 7.15 | 7.25 | 7.36 | 7.13 | 7.40 | 7.81 | 8.20 | 8.52 | 8.85 | 8.79 | 7.60 | 7.63 | 7.82 | 8.81 | 8.02 | 8.66 | 9.70 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,400,439K ÷ $197,216K
= 7.10
Based on the provided data, Ziff Davis Inc's fixed asset turnover ratio has been fluctuating over the past few years. The fixed asset turnover ratio measures how efficiently the company is generating revenue from its investment in fixed assets.
Initially, in March 2020, the company had a high fixed asset turnover ratio of 9.70, indicating that it generated $9.70 in sales for every dollar invested in fixed assets. However, the ratio decreased to 7.63 by June 2021, suggesting a decline in the company's ability to utilize its fixed assets effectively to generate revenue.
There was a slight improvement in the ratio by December 2021, reaching 8.79, but it then decreased again to 7.13 by June 2023. This decline indicates that Ziff Davis Inc may be experiencing challenges in optimizing the productivity of its fixed assets in generating sales.
The ratio continued to fluctuate between 7.36 and 6.95 from September 2023 to September 2024, indicating inconsistency in the company's performance in this area.
Overall, the trend in Ziff Davis Inc's fixed asset turnover ratio shows variable efficiency in utilizing its fixed assets to generate revenue. It is essential for the company to monitor and manage its fixed assets effectively to improve and maintain stable performance in the long term.