Enhabit Inc. (EHAB)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022
Revenue (ttm)	US$ in thousands	1,003,100	1,009,200	1,021,300	1,037,200
Property, plant and equipment	US$ in thousands	9,100	10,300	9,800	9,800	10,300	21,200	22,700
Fixed asset turnover		110.23	97.98	104.21	105.84

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,003,100K ÷ $9,100K
= 110.23

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets.

Based on the data provided for Enhabit Inc., the fixed asset turnover ratios for the quarters ending in December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023 were 110.23, 97.98, 104.21, and 105.84, respectively.

The trend in Enhabit Inc.'s fixed asset turnover ratio shows a fluctuating pattern over the past quarters, with relatively high ratios observed in some periods and lower ratios in others. The highest ratio of 110.23 in December 31, 2023, suggests that the company generated a significant amount of revenue relative to its investment in fixed assets during that period.

It is important for Enhabit Inc. to further analyze the reasons behind the fluctuations in the fixed asset turnover ratio to ensure optimal utilization of its fixed assets. Additional factors such as changes in sales volume, asset base, or operational efficiency may have influenced these ratios. Maintaining a consistently high fixed asset turnover ratio can indicate efficient asset management and effective revenue generation for the company.