Centene Corp (CNC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 153,999,000 | 144,547,000 | 125,982,000 | 111,115,000 | 74,639,000 |
| Property, plant and equipment | US$ in thousands | 2,019,000 | 2,432,000 | 3,391,000 | 2,774,000 | 2,121,000 |
| Fixed asset turnover | 76.27 | 59.44 | 37.15 | 40.06 | 35.19 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $153,999,000K ÷ $2,019,000K
= 76.27
Fixed asset turnover is a financial ratio that measures how efficiently a company generates revenue from its investment in fixed assets. It indicates the company's ability to generate sales from its investment in property, plant, and equipment.
Analyzing Centene Corp.'s fixed asset turnover over the past five years, we observe an increasing trend from 35.19 in 2019 to 76.27 in 2023. This improvement suggests that Centene has become more efficient in utilizing its fixed assets to generate revenue over the years.
A fixed asset turnover ratio above 1 indicates that the company generates more revenue per dollar invested in fixed assets. Centene's fixed asset turnover ratios in recent years have consistently been well above 1, indicating efficient utilization of its fixed assets.
This improvement in fixed asset turnover may be attributed to various factors such as operational efficiency, optimization of asset utilization, and effective capital expenditure management. It shows that Centene has been increasingly successful in generating revenue from its fixed assets, reflecting positively on the company's operational performance and asset management strategies.
Peer comparison
Dec 31, 2023