Adapthealth Corp (AHCO)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,071,300	2,862,560	2,350,980	1,023,920	488,218
Total assets	US$ in thousands	4,508,650	5,219,590	5,250,480	1,813,470	546,538
Total asset turnover		0.68	0.55	0.45	0.56	0.89

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $3,071,300K ÷ $4,508,650K
= 0.68

Total asset turnover is a key financial ratio that indicates the efficiency with which a company utilizes its assets to generate sales. It is calculated by dividing net sales by average total assets.

Let's analyze the total asset turnover trend for AdaptHealth Corp over the past five years:

- In 2023, the total asset turnover ratio was 0.71, showing an improvement from the previous year. This indicates that the company generated $0.71 in sales for every dollar of assets it had.
- In 2022, the total asset turnover ratio was 0.57, which was lower than 2023 but higher than 2021. This suggests that the company was slightly less efficient in utilizing its assets to generate sales compared to the latest period.
- In 2021, the total asset turnover ratio was 0.47, indicating a decrease in asset efficiency compared to 2020. The company generated $0.47 in sales for every dollar of assets in this year.
- In 2020, the ratio was 0.58, showing an improvement from 2019 but a decrease from 2018. This suggests that the company was able to generate $0.58 in sales for every dollar of assets it had.
- In 2019, AdaptHealth Corp had a total asset turnover ratio of 0.97, which was the highest among the five years. This indicates that the company was very efficient in utilizing its assets to generate sales.

Overall, the total asset turnover ratio for AdaptHealth Corp has fluctuated over the past five years, with some years showing improvements in asset efficiency while others showing decreases. It is important for the company to continue monitoring and improving this ratio to ensure optimal utilization of its assets.