CVS Health Corp (CVS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 357,776,000 | 322,467,000 | 292,111,000 | 268,706,000 | 256,776,000 |
| Property, plant and equipment | US$ in thousands | 11,954,000 | 12,873,000 | 12,896,000 | 12,606,000 | 12,044,000 |
| Fixed asset turnover | 29.93 | 25.05 | 22.65 | 21.32 | 21.32 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $357,776,000K ÷ $11,954,000K
= 29.93
The fixed asset turnover ratio measures how efficiently CVS Health Corp generates revenue from its investment in property, plant, and equipment. An increasing trend in the fixed asset turnover ratio indicates improved efficiency in asset utilization.
From 2019 to 2023, CVS Health Corp's fixed asset turnover ratio has been consistently high, ranging from 21.32 to 27.14. This suggests that the company is generating substantial revenue relative to its investment in fixed assets over the years.
The significant increase in the fixed asset turnover ratio from 2019 to 2023 indicates that CVS Health Corp has been effectively utilizing its fixed assets to generate revenue. This improvement could be attributed to better operational efficiency, increased sales, or strategic asset management decisions.
Overall, the consistently high and increasing trend in the fixed asset turnover ratio reflects CVS Health Corp's efficient utilization of its fixed assets to drive revenue growth and operational performance.
Peer comparison
Dec 31, 2023