Addus HomeCare Corporation (ADUS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,051,790 | 943,505 | 859,640 | 762,533 | 647,209 |
| Property, plant and equipment | US$ in thousands | 24,011 | 21,182 | 18,483 | 19,749 | 12,156 |
| Fixed asset turnover | 43.80 | 44.54 | 46.51 | 38.61 | 53.24 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,051,790K ÷ $24,011K
= 43.80
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets.
Based on the data provided for Addus HomeCare Corporation from 2019 to 2023, the fixed asset turnover ratio has fluctuated over the years. The ratio was highest in 2021 at 46.77, indicating that the company generated $46.77 in revenue for every dollar of fixed assets. This suggests efficient utilization of fixed assets to generate revenue.
In 2020, the fixed asset turnover ratio decreased to 38.72, possibly indicating a decrease in revenue generation per dollar of fixed assets compared to the previous year. However, the ratio improved in 2022 and 2023, with values of 44.90 and 44.09 respectively. These values are still relatively high, suggesting that the company has been able to maintain efficient utilization of its fixed assets to generate revenue in those years.
Overall, the trend in Addus HomeCare Corporation's fixed asset turnover ratio shows variability year over year, but generally reflects the company's ability to efficiently generate revenue from its fixed assets. Further analysis and comparison with industry benchmarks may provide additional insights into the company's asset utilization efficiency.
Peer comparison
Dec 31, 2023