Adapthealth Corp (AHCO)
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 | 3,226,960 | 3,195,253 | 3,163,650 | 3,118,561 | 3,071,305 | 2,996,410 | 2,952,637 | 2,893,848 | 2,862,561 | 2,123,026 | 2,015,922 | 1,899,702 | 1,673,661 | 1,677,361 | 1,322,838 | 961,338 | 689,118 | 816,705 | 675,717 | 560,602 |
| Property, plant and equipment | US$ in thousands | 474,556 | 474,922 | 496,136 | 501,892 | 495,101 | 490,053 | 504,356 | 503,423 | 487,079 | 473,056 | 454,773 | 424,764 | 398,577 | 341,357 | 309,071 | 298,537 | 110,468 | 101,656 | 83,216 | 87,301 |
| Fixed asset turnover | 6.80 | 6.73 | 6.38 | 6.21 | 6.20 | 6.11 | 5.85 | 5.75 | 5.88 | 4.49 | 4.43 | 4.47 | 4.20 | 4.91 | 4.28 | 3.22 | 6.24 | 8.03 | 8.12 | 6.42 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,226,960K ÷ $474,556K
= 6.80
The fixed asset turnover ratio measures how efficiently a company generates sales from its fixed assets. A higher ratio suggests better asset utilization.
Analyzing the fixed asset turnover of Adapthealth Corp from March 31, 2020, to December 31, 2024, there is a noticeable fluctuation in the ratio over time. The ratio started at 6.42 in March 2020, increased to 8.12 by June 2020, and remained relatively stable around the 8 mark until December 2020.
However, there was a significant drop in the ratio to 3.22 in March 2021, indicating a decrease in sales generated from fixed assets. The ratio gradually improved over the following quarters, reaching 6.80 by December 31, 2024.
Overall, the fluctuation in the fixed asset turnover ratio over the period indicates varying efficiency in utilizing fixed assets to generate sales. Further analysis of the company's operations and investment in fixed assets may help understand the factors driving these fluctuations.
Peer comparison
Dec 31, 2024