Halozyme Therapeutics Inc (HALO)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	809,880	641,313	435,810	267,594	195,992
Property, plant and equipment	US$ in thousands	38,108	35,101	6,791	7,293	10,855
Fixed asset turnover		21.25	18.27	64.17	36.69	18.06

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $809,880K ÷ $38,108K
= 21.25

Fixed asset turnover ratio measures the efficiency with which a company generates revenues relative to its investment in fixed assets. A higher ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.

Analyzing Halozyme Therapeutics Inc.'s fixed asset turnover, we observe fluctuations over the past five years. The ratio declined from 27.97 in 2019 to 11.06 in 2023. This significant decrease suggests a lower level of sales generated per dollar of fixed assets invested within the company.

Interestingly, the ratio experienced a substantial peak at 65.28 in 2021 before dropping to 36.69 in 2022, implying an exceptional efficiency in asset utilization to generate sales during that period.

Overall, the fluctuating trend in Halozyme Therapeutics' fixed asset turnover indicates varying levels of efficiency in utilizing its fixed assets to generate revenue over the years. Further analysis of the company's operational and strategic decisions may be required to understand the reasons behind these fluctuations and to assess the company's overall asset management effectiveness.