Community Healthcare Trust Inc (CHCT)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 112,845 | 97,679 | 90,579 | 75,684 | 60,849 |
| Property, plant and equipment | US$ in thousands | 136,532 | 117,657 | 97,397 | 83,714 | 68,129 |
| Fixed asset turnover | 0.83 | 0.83 | 0.93 | 0.90 | 0.89 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $112,845K ÷ $136,532K
= 0.83
Community Healthcare Trust Inc's fixed asset turnover has remained relatively stable over the past five years, ranging from 0.12 to 0.13. This ratio indicates that for every dollar invested in fixed assets, the company generates between $0.12 and $0.13 in revenue.
A fixed asset turnover ratio of around 0.13 suggests that the company is effectively utilizing its fixed assets to generate revenue. It indicates that Community Healthcare Trust Inc is efficient in using its property, plant, and equipment or other long-term assets to generate sales.
Overall, the consistency of the fixed asset turnover ratio over the years indicates that the company has maintained a relatively stable level of efficiency in generating revenue from its fixed assets. However, it would be beneficial for the company to compare this ratio with industry benchmarks to gain a better understanding of its performance in utilizing fixed assets compared to its peers.
Peer comparison
Dec 31, 2023