Fidelity National Information Services Inc. (NYSE:FIS)

Net Fixed Asset Turnover

The net fixed asset turnover ratio demonstrates some variability across the observed quarters, beginning at 15.13 in March 2019 and experiencing a decline to 11.29 by September 2019. Subsequently, the ratio generally recovers and trends upwards, reaching 14.15 by December 2020. From 2021 onward, the ratio maintains a steady ascent, peaking at 17.36 in March 2023. This upward movement suggests improved efficiency in generating revenue from fixed assets over time, with temporary reductions in late 2019 followed by sustained improvement.

Total Asset Turnover

The total asset turnover ratio starts relatively low at 0.35 in March 2019 but quickly declines to a minimum of 0.11 by September 2019. It remains fairly stable at approximately 0.14 to 0.17 during 2020 and 2021, indicating modest revenue generation relative to total assets. From late 2022, the ratio shows a noticeable increase, rising to 0.24 by March 2023. This indicates a gradual enhancement in asset utilization efficiency in more recent periods.

Equity Turnover

The equity turnover ratio begins at 0.85 in March 2019 and declines significantly to 0.19 by September 2019. It then exhibits a generally upward trend, increasing to around 0.29 by December 2021. A marked improvement occurs in the latest quarters, with the ratio jumping to 0.54 by March 2023. This trend implies an increasingly efficient use of shareholders' equity to generate revenues, especially notable in the most recent year.

The revenue of the company experienced notable fluctuations over the reported periods. After starting at 2,057 million USD in the first quarter of 2019, revenue grew steadily through 2019, peaking at 3,342 million USD by the end of the year. The first half of 2020 saw a decline, reaching a low of 2,962 million USD in the second quarter, likely reflecting external challenges during this time. Subsequently, revenue rebounded through the latter half of 2020 and continued to grow into 2021, peaking at 3,672 million USD in the last quarter of that year. Revenue levels remained relatively stable through 2022 and the first quarter of 2023, fluctuating around the 3,500 to 3,700 million USD range, but showing a slight decreasing trend in early 2023 to 3,510 million USD.

Regarding property and equipment, net, the values demonstrated a gradual increase from 556 million USD at the start of 2019 to a peak of 949 million USD at the end of 2021. Thereafter, asset values slightly declined during 2022 and early 2023, ending at 838 million USD in the first quarter of 2023. This pattern suggests continued investment in physical assets until late 2021 followed by a modest reduction or depreciation in the subsequent periods.

The net fixed asset turnover ratio, which measures how efficiently the company uses its fixed assets to generate revenue, exhibited an overall upward trend. Starting at 15.13 in the first quarter of 2019, the ratio declined notably during mid to late 2019, reaching a low point around 11.29 to 11.48. However, from 2020 onward, the ratio consistently improved, advancing from approximately 13 to over 17 by early 2023. This increasing turnover indicates improved efficiency in utilizing fixed assets to produce income despite fluctuations in asset base and revenue.

Revenue Trends

Steady growth through 2019 followed by a dip in early 2020 and strong recovery throughout 2020 and 2021; stabilization and slight decline in early 2023.

Property and Equipment, Net

Incremental increase through 2019 to 2021, peaking at the end of 2021; modest decline during 2022 and early 2023.

Net Fixed Asset Turnover Ratio

Declined in 2019 but improved steadily afterward, achieving higher efficiency in fixed asset utilization by early 2023.

Overall, the data reflects a company that faced some headwinds in early 2020 but has generally succeeded in enhancing operational efficiency related to its fixed assets. While asset investment peaked in late 2021 and then receded slightly, revenue remained comparatively robust, supported by improved asset turnover ratios. This suggests effective management of asset resources in relation to revenue generation over the examined period.

Revenue Trends

Revenue demonstrates notable fluctuations over the analyzed quarters. Initially, there was a steady increase from March 2019 through December 2019, peaking at 3,342 million USD. This was followed by a decline during the first half of 2020, likely reflecting broader economic impacts. Subsequently, revenue recovered and stabilized, maintaining levels generally above 3,200 million USD through 2021 and 2022. The first quarter of 2023 shows a slight decline to 3,510 million USD compared to prior quarters, but remains within a relatively stable range overall.

Total Assets Movement

Total assets display a significant jump from March to September 2019, increasing from 24,073 million USD to a peak of 83,718 million USD. After this sharp rise, assets maintain a relatively high level, fluctuating mildly around the 80,000 million USD mark through late 2021. From 2022 onwards, there is a gradual decline in total assets, culminating in 61,078 million USD as of March 2023. This downward trend suggests a sizable reduction in asset base during the most recent period under review.

Total Asset Turnover Analysis

The total asset turnover ratio exhibited a downward trend early in the dataset, falling from 0.35 in March 2019 to approximately 0.11-0.12 by late 2019. This corresponds with the substantial increase in total assets during the same period, which would dilute the turnover ratio if revenue did not increase proportionally. From 2020 onward, the ratio shows gradual improvement, rising steadily to 0.24 by the first quarter of 2023. The increase in turnover ratio in recent quarters indicates improved utilization efficiency of assets to generate revenue, despite the overall reduction in total assets.

Summary Insights

The data reveals an initial phase of aggressive asset growth that considerably outpaced revenue increases, resulting in a marked drop in asset turnover efficiency. Following this, the firm achieved greater stabilization in revenue and asset management, evidencing gradual improvements in asset turnover. Most recently, decreasing asset levels combined with consistent revenue suggest an effort to optimize the balance sheet and operational performance. The overall trends point to a shift towards leaner asset utilization with moderately stable revenue generation in recent quarters.

Revenue Trends

Revenue exhibited a general upward trend from March 2019 to December 2021, increasing from approximately $2.06 billion to $3.67 billion. There was some fluctuation, including a notable dip in the second quarter of 2020, likely reflecting broader economic impacts during that period. Revenue peaked in December 2021 but showed some volatility afterward, with a decline observed in early 2023, reaching around $3.51 billion by March 31, 2023.

Total Stockholders’ Equity Trends

Stockholders’ equity presented significant variability over the period. Starting near $9.9 billion in early 2019, equity suddenly jumped to over $49 billion by September 2019 and remained steady through 2021 and early 2022. However, from mid-2022 onward, total equity declined sharply, falling to approximately $27 billion by March 2023. This sharp decline suggests major changes in the company’s financial structure, possibly due to asset revaluation, large-scale transactions, or other structural adjustments.

Equity Turnover Ratio Trends

The equity turnover ratio, which measures how efficiently equity is used to generate revenue, started around 0.85 in early 2019, then dropped sharply to about 0.19 by September 2019. Subsequently, the ratio gradually increased over the following quarters, ranging between 0.23 and 0.32 through 2021 and 2022, reflecting improving efficiency in equity utilization. By late 2022 and early 2023, the ratio experienced a notable jump, rising to about 0.54, which correlates with the substantial decline in stockholders' equity while revenue remained relatively stable. This indicates a more efficient use of equity relative to revenue in the most recent period.

Overall Insights

The data indicates steady revenue growth over several years, interrupted by some variability in 2020 and a slight decrease in early 2023. Despite stable revenue, the dramatic drop in stockholders’ equity in late 2022 and early 2023 is a significant negative change reflecting possible major financial restructuring or other balance sheet events. The improvements in equity turnover ratio toward the end of the period suggest that the company is generating more revenue per unit of equity, but this could also be influenced by the sharp decrease in equity. These patterns should be monitored closely to understand their underlying causes and long-term implications.