Graham Holdings Co (GHC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,394,680 | 3,881,520 | 3,193,800 | 3,072,330 | 2,932,100 |
| Property, plant and equipment | US$ in thousands | 560,314 | 503,000 | 468,126 | 378,286 | 384,670 |
| Fixed asset turnover | 7.84 | 7.72 | 6.82 | 8.12 | 7.62 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,394,680K ÷ $560,314K
= 7.84
Graham Holdings Co. has shown a consistent and strong fixed asset turnover over the past five years, with the ratio ranging from 6.81 to 7.88. This indicates that the company is efficiently generating revenue relative to its investment in fixed assets. The upward trend in the fixed asset turnover ratio suggests that the company has been able to effectively utilize its fixed assets to generate sales. An increasing fixed asset turnover ratio typically signifies improved operational efficiency and effective asset management. This implies that Graham Holdings Co. has been successful in maximizing the productivity of its fixed assets to drive revenue growth. Overall, the stable and high fixed asset turnover ratios reflect positively on the company's operational performance and asset utilization efficiency.
Peer comparison
Dec 31, 2023