Adtalem Global Education Inc (ATGE)

Fixed asset turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	1,584,650	1,450,830	1,381,840	899,248	866,427
Property, plant and equipment	US$ in thousands	248,524	244,649	289,926	283,692	286,102
Fixed asset turnover		6.38	5.93	4.77	3.17	3.03

June 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,584,650K ÷ $248,524K
= 6.38

The fixed asset turnover ratio for Adtalem Global Education Inc has been improving steadily over the past five years. In particular, the ratio increased from 3.03 in Jun 30, 2020, to 6.38 in Jun 30, 2024. This indicates that, on average, for each dollar invested in fixed assets, the company generated $6.38 in revenue in the most recent period, showcasing the efficiency of utilizing its fixed assets to generate revenue.

The trend of increasing fixed asset turnover suggests that Adtalem Global Education Inc is effectively utilizing its fixed assets to generate revenue, which can be a positive sign of operational efficiency and asset productivity. This improvement indicates that the company is efficiently managing its fixed assets and generating higher revenue relative to the investment in fixed assets.