Adtalem Global Education Inc (ATGE)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019
Revenue (ttm)	US$ in thousands	1,584,652	1,539,386	1,495,810	1,465,402	1,450,826	1,447,416	1,442,615	1,450,979	1,385,780	1,248,015	1,113,947	977,145	906,901	943,164	984,438	1,016,214	1,052,001	1,056,512	1,043,728	1,031,517
Property, plant and equipment	US$ in thousands	248,524	239,657	235,297	246,669	244,649	246,563	275,617	281,581	289,926	294,538	301,666	308,759	283,692	278,864	279,186	289,944	286,102	286,346	281,975	280,823
Fixed asset turnover		6.38	6.42	6.36	5.94	5.93	5.87	5.23	5.15	4.78	4.24	3.69	3.16	3.20	3.38	3.53	3.50	3.68	3.69	3.70	3.67

June 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,584,652K ÷ $248,524K
= 6.38

Fixed asset turnover is a key financial ratio that measures how efficiently a company is generating revenue from its fixed assets. Adtalem Global Education Inc's fixed asset turnover has fluctuated over the past few quarters but generally shows a positive trend.

Looking at the trend over the last few quarters, we see that the fixed asset turnover has been steadily increasing from 3.67 in Q3 2019 to 6.38 in Q2 2024. This indicates that the company is improving its efficiency in utilizing its fixed assets to generate sales.

A high fixed asset turnover ratio implies that the company is effectively utilizing its fixed assets to generate revenue, which is a positive indicator of operational efficiency. Adtalem Global Education Inc's current fixed asset turnover ratio of 6.38 in Q2 2024 suggests that the company is generating $6.38 in revenue for every $1 invested in fixed assets.

Overall, the increasing trend in Adtalem Global Education Inc's fixed asset turnover ratio indicates improved efficiency in utilizing fixed assets to generate revenue, which could potentially lead to higher profitability and shareholder value in the long run.