Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Long-term Activity Ratios (Summary)
AppLovin Corp., long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of long-term activity ratios reveals fluctuating performance across the observed period. Several ratios demonstrate considerable volatility, while others exhibit more defined trends. Overall, asset utilization appears to have improved through 2024, with some moderation in the most recent year.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio experienced a significant decline from 43.91 in 2021 to 18.94 in 2023. A recovery was then observed in 2024, increasing to 29.34, followed by a substantial rise to 44.76 in 2025. This suggests periods of inefficient fixed asset utilization followed by improvements, potentially linked to changes in production capacity or sales strategies.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This ratio, which incorporates operating lease obligations, presents a more stable, though still fluctuating, pattern. It decreased from 20.75 in 2021 to 14.82 in 2023, then increased to 23.71 in 2024 and 37.06 in 2025. The inclusion of lease obligations appears to moderate the volatility seen in the standard net fixed asset turnover ratio, but still indicates changes in the efficiency of utilizing total fixed assets.
- Total Asset Turnover
- The total asset turnover ratio demonstrates a clear upward trend from 0.45 in 2021 to a peak of 0.80 in 2024. A slight decrease to 0.75 is noted in 2025. This indicates improving efficiency in generating revenue from its asset base, peaking in 2024 before a minor pullback. The overall trend suggests better asset management over the period.
- Equity Turnover
- The equity turnover ratio shows a marked increase from 1.31 in 2021 to 4.32 in 2024, indicating a significantly improved ability to generate revenue from shareholder equity. However, this ratio decreased to 2.57 in 2025. This substantial fluctuation suggests a changing relationship between revenue and equity, potentially due to shifts in financial leverage or equity structure.
In summary, the observed ratios suggest a period of dynamic change in asset utilization and revenue generation. While some ratios demonstrate improvements, particularly in 2024, the fluctuations highlight potential areas for further investigation to understand the underlying drivers of these changes.
Net Fixed Asset Turnover
AppLovin Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palantir Technologies Inc. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Software & Services | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover = Revenue ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits considerable fluctuation over the observed period. Initial values demonstrate a relatively strong relationship between revenue and net fixed assets, but this relationship weakens significantly before recovering towards the end of the period.
- Overall Trend
- The ratio initially declines from 2021 to 2022, then experiences a substantial decrease in 2023. A partial recovery is noted in 2024, followed by a significant increase in 2025, reaching a level comparable to that of 2021.
- 2021-2022
- A decrease from 43.91 to 35.87 is observed. This suggests a less efficient utilization of fixed assets to generate revenue during 2022 compared to 2021. The decline could be attributed to an increase in net fixed assets without a proportional increase in revenue, or a slight decrease in revenue.
- 2022-2023
- The most pronounced decline occurs between these years, with the ratio falling to 18.94. This indicates a significant reduction in the efficiency of fixed asset utilization. The substantial increase in property and equipment, net, during this period, coupled with a more moderate increase in revenue, likely contributed to this decline.
- 2023-2024
- A recovery to 29.34 is seen. While still below the 2021 and 2022 levels, this represents an improvement in fixed asset utilization. The decrease in property and equipment, net, alongside a substantial increase in revenue, likely drove this improvement.
- 2024-2025
- The ratio increases substantially to 44.76, surpassing the 2021 level. This suggests a highly efficient utilization of fixed assets in 2025. The continued growth in revenue, combined with a further decrease in property and equipment, net, likely explains this significant increase.
The fluctuations in the net fixed asset turnover ratio suggest changes in the company’s investment strategy and operational efficiency. The large swings warrant further investigation to understand the underlying drivers of these changes and their implications for future performance.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
AppLovin Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Operating lease right-of-use assets | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palantir Technologies Inc. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Software & Services | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, alongside its component figures of revenue and net fixed assets, exhibits considerable fluctuation over the observed five-year period. Revenue demonstrates a consistent upward trajectory, while net fixed assets show a more volatile pattern. This interplay significantly impacts the turnover ratio.
- Revenue Trend
- Revenue increased steadily from US$2,793,104 thousand in 2021 to US$5,480,717 thousand in 2025. The growth was particularly pronounced between 2022 and 2024, indicating a period of accelerated sales expansion. The rate of increase slowed somewhat between 2024 and 2025, though revenue continued to climb.
- Net Fixed Asset Trend
- Net fixed assets, encompassing property, equipment, operating leases, and right-of-use assets, increased from US$134,583 thousand in 2021 to US$221,541 thousand in 2023. However, a decrease was observed in 2024 to US$198,599 thousand, followed by a further decline to US$147,902 thousand in 2025. This suggests potential asset disposals or depreciation outpacing new investments towards the end of the period.
- Net Fixed Asset Turnover Ratio Analysis
- The net fixed asset turnover ratio began at 20.75 in 2021 and decreased to 20.28 in 2022, indicating a slight reduction in revenue generated per dollar of net fixed assets. A more substantial decline occurred in 2023, with the ratio falling to 14.82, likely due to the significant increase in net fixed assets relative to revenue growth. The ratio rebounded sharply in 2024 to 23.71, coinciding with a substantial increase in revenue and a decrease in net fixed assets. The most significant increase occurred in 2025, reaching 37.06, driven by continued revenue growth and a further reduction in net fixed assets. This suggests improved efficiency in utilizing fixed assets to generate revenue in the latter years of the period.
The fluctuations in the net fixed asset turnover ratio highlight the sensitivity of this metric to changes in both revenue and the value of fixed assets. The recent upward trend in the ratio suggests that the company is becoming more effective at generating sales from its fixed asset base, potentially through improved operational efficiency or strategic asset management.
Total Asset Turnover
AppLovin Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palantir Technologies Inc. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Software & Services | ||||||
| Total Asset Turnover, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Total asset turnover = Revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a clear upward trend over the observed period, followed by a slight decrease in the most recent year. This indicates a changing efficiency in how assets are utilized to generate revenue.
- Overall Trend
- From 2021 to 2024, the total asset turnover ratio increased consistently. It rose from 0.45 in 2021 to a peak of 0.80 in 2024. This suggests improving operational efficiency and a more effective use of assets to drive sales growth during this timeframe.
- Year-over-Year Changes
- The ratio increased from 0.45 in 2021 to 0.48 in 2022, representing a modest improvement. A more substantial increase occurred between 2022 and 2023, with the ratio reaching 0.61. The largest year-over-year change was observed between 2023 and 2024, where the ratio nearly reached 0.80. However, in 2025, the ratio decreased to 0.75, signaling a potential moderation in asset utilization efficiency.
- Recent Performance
- The decline in the total asset turnover ratio in 2025, from 0.80 to 0.75, warrants further investigation. While still a relatively high value compared to the earlier years in the period, the decrease suggests that revenue growth may not have kept pace with the increase in total assets during that year. This could be due to a variety of factors, including increased investment in assets that have not yet translated into revenue, or a slowdown in sales.
The observed pattern suggests a period of improving asset efficiency, culminating in 2024, followed by a slight pullback in 2025. Continued monitoring of this ratio is recommended to determine if the 2025 decrease is an anomaly or the beginning of a new trend.
Equity Turnover
AppLovin Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palantir Technologies Inc. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Software & Services | ||||||
| Equity Turnover, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Equity turnover = Revenue ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The equity turnover ratio demonstrates a fluctuating pattern over the five-year period. Initially, the ratio increased before exhibiting a period of decline and subsequent recovery.
- Overall Trend
- The equity turnover ratio began at 1.31 in 2021 and increased to 1.48 in 2022. A significant increase followed, reaching 2.61 in 2023, and peaking at 4.32 in 2024. The ratio then decreased to 2.57 in 2025, though remaining substantially higher than the initial values.
- Year-over-Year Changes
- From 2021 to 2022, the equity turnover ratio experienced a 13.0% increase. The most substantial year-over-year change occurred between 2023 and 2024, with a 107.8% increase. A subsequent decrease of 40.5% was observed from 2024 to 2025.
- Relationship to Revenue
- Revenue consistently increased throughout the period, rising from US$2,793,104 thousand in 2021 to US$5,480,717 thousand in 2025. The equity turnover ratio’s increase from 2022 to 2024 suggests that revenue growth was outpacing the growth of stockholders’ equity. The decrease in the equity turnover ratio in 2025, despite continued revenue growth, indicates a relative increase in stockholders’ equity.
- Stockholders’ Equity Impact
- Stockholders’ equity decreased from 2021 to 2023, coinciding with the initial increases in the equity turnover ratio. The subsequent increase in stockholders’ equity in 2025 aligns with the observed decrease in the equity turnover ratio. This inverse relationship suggests that changes in stockholders’ equity significantly influence the equity turnover ratio.