CorVel Corp (CRVL)
Fixed asset turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 794,935 | 718,055 | 646,010 | 551,977 | 592,076 |
| Property, plant and equipment | US$ in thousands | 85,892 | 82,770 | 76,268 | 70,619 | 75,900 |
| Fixed asset turnover | 9.26 | 8.68 | 8.47 | 7.82 | 7.80 |
March 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $794,935K ÷ $85,892K
= 9.26
CorVel Corp's fixed asset turnover has shown a consistent upward trend over the past five years, with values of 7.80 in 2020, 7.82 in 2021, 8.47 in 2022, 8.68 in 2023, and 9.26 in 2024. This indicates that the company has been generating more revenue relative to its investment in fixed assets each year. A higher fixed asset turnover ratio suggests that CorVel Corp is utilizing its fixed assets efficiently to generate sales. This could be attributed to effective asset management, operational efficiency, or successful capital deployment strategies. Overall, the increasing trend in the fixed asset turnover ratio reflects positively on the company's ability to generate revenue from its investment in fixed assets.