Graham Holdings Co (GHC)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,790,900 | 4,414,880 | 3,924,490 | 3,185,970 | 2,889,120 |
| Property, plant and equipment | US$ in thousands | — | — | 503,000 | 468,126 | 378,286 |
| Fixed asset turnover | — | — | 7.80 | 6.81 | 7.64 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,790,900K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. In the case of Graham Holdings Co, the fixed asset turnover ratio has shown fluctuations over the past few years.
In 2020, the fixed asset turnover ratio was 7.64, indicating that the company was able to generate $7.64 in revenue for every dollar invested in fixed assets. This was a relatively high ratio, suggesting effective utilization of fixed assets to generate revenue.
However, in 2021, the ratio decreased to 6.81, indicating a decline in efficiency in generating revenue from fixed assets. This could be due to various factors such as changes in business operations, asset utilization, or market conditions.
In 2022, the fixed asset turnover ratio improved to 7.80, surpassing the 2020 level. This increase suggests that the company was able to enhance its efficiency in utilizing fixed assets to generate revenue during that period.
Unfortunately, data for 2023 and 2024 are not available (indicated by "—"), making it difficult to provide a complete trend analysis. It is important for Graham Holdings Co to monitor and manage its fixed asset turnover ratio consistently to ensure optimal utilization of fixed assets and maximize revenue generation.
Peer comparison
Dec 31, 2024