Healthcare Services Group Inc (HCSG)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,715,680 | 1,671,390 | 1,690,180 | 1,641,960 | 1,760,300 |
| Total assets | US$ in thousands | 802,772 | 790,652 | 718,334 | 777,529 | 785,031 |
| Total asset turnover | 2.14 | 2.11 | 2.35 | 2.11 | 2.24 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,715,680K ÷ $802,772K
= 2.14
The total asset turnover ratio of Healthcare Services Group Inc indicates how efficiently the company is utilizing its total assets to generate revenue. The trend in the total asset turnover ratio over the years shows fluctuations.
In 2020, the total asset turnover ratio was 2.24, suggesting that for every dollar of total assets, the company generated $2.24 in revenue. The ratio decreased to 2.11 in 2021, possibly indicating a decrease in revenue generation efficiency or an increase in total assets without a proportional increase in revenue.
However, the ratio improved in 2022 to 2.35, signaling that the company was able to generate more revenue per dollar of total assets. But in 2023, it decreased again to 2.11, showing a potential decline in efficiency in asset utilization.
In 2024, the total asset turnover ratio slightly increased to 2.14. Overall, the company has shown some fluctuations in its ability to efficiently utilize its total assets to generate revenue over the years, and further monitoring of this ratio is recommended to understand the underlying factors affecting this metric.