Graham Holdings Co (GHC)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	4,403,440	4,303,530	4,201,410	3,997,102	3,881,548	3,696,730	3,495,222	3,386,894	3,193,798	3,082,719	2,998,779	2,846,516	2,873,113	2,865,588	2,887,426	2,972,157	2,932,099	2,857,708	2,793,654	2,728,729
Property, plant and equipment	US$ in thousands	560,314	539,924	511,182	506,995	503,000	468,173	442,409	456,430	468,126	461,107	373,471	375,862	378,286	379,010	376,681	382,408	384,670	370,882	327,084	319,408
Fixed asset turnover		7.86	7.97	8.22	7.88	7.72	7.90	7.90	7.42	6.82	6.69	8.03	7.57	7.60	7.56	7.67	7.77	7.62	7.71	8.54	8.54

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,403,440K ÷ $560,314K
= 7.86

The fixed asset turnover ratio for Graham Holdings Co. has been relatively stable over the past eight quarters, ranging from 7.42 to 8.24. This ratio measures how effectively the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is efficiently using its fixed assets to generate sales.

Overall, Graham Holdings Co. has maintained a healthy fixed asset turnover ratio, consistently above 7. The consistent values suggest that the company is effectively managing its fixed assets to generate revenue. Investors and stakeholders can view this stability positively as it indicates the company's ability to derive sales from its fixed assets consistently over time.

It is important for the company to continue monitoring and managing its fixed asset turnover ratio to ensure that its assets are being utilized efficiently to drive revenue growth and profitability in the long term.