The Ensign Group Inc (ENSG)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,258,320 | 4,104,767 | 3,961,754 | 3,849,940 | 3,731,458 | 3,554,106 | 3,388,158 | 3,200,096 | 3,026,034 | 2,910,738 | 2,808,673 | 2,713,098 | 2,627,461 | 2,566,044 | 2,496,870 | 2,442,374 | 2,402,596 | 2,093,511 | 2,091,399 | 2,076,776 |
| Property, plant and equipment | US$ in thousands | 1,291,350 | 1,217,690 | 1,177,820 | 1,101,560 | 1,090,770 | 1,067,900 | 1,008,740 | 1,002,050 | 992,010 | 963,465 | 908,228 | 906,777 | 888,434 | 791,247 | 788,601 | 779,269 | 778,244 | 783,187 | 780,439 | 783,291 |
| Fixed asset turnover | 3.30 | 3.37 | 3.36 | 3.49 | 3.42 | 3.33 | 3.36 | 3.19 | 3.05 | 3.02 | 3.09 | 2.99 | 2.96 | 3.24 | 3.17 | 3.13 | 3.09 | 2.67 | 2.68 | 2.65 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,258,320K ÷ $1,291,350K
= 3.30
The fixed asset turnover of The Ensign Group Inc has shown a generally increasing trend over the observed period. The ratio measures how efficiently the company is generating sales revenue from its investment in fixed assets.
From March 31, 2020, to December 31, 2024, the fixed asset turnover ratio increased from 2.65 to 3.30, with some fluctuations along the way. This indicates that the company has been able to generate more revenue relative to its investment in fixed assets over time.
The peak in the fixed asset turnover ratio was observed on March 31, 2024, at 3.49, suggesting the company was particularly efficient in utilizing its fixed assets to generate sales revenue at that point.
Overall, the increasing trend in the fixed asset turnover ratio is a positive sign as it signifies improved efficiency in asset utilization, which can lead to higher profitability and shareholder value in the long run. However, it would be beneficial to continue monitoring this ratio to ensure the company maintains or improves its asset efficiency.
Peer comparison
Dec 31, 2024