Heidrick & Struggles International (HSII)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,115,680 | 1,041,180 | 1,083,590 | 1,008,470 | 629,370 |
| Property, plant and equipment | US$ in thousands | 51,685 | 35,752 | 30,207 | 27,085 | 23,492 |
| Fixed asset turnover | 21.59 | 29.12 | 35.87 | 37.23 | 26.79 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,115,680K ÷ $51,685K
= 21.59
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Heidrick & Struggles International, the fixed asset turnover has shown fluctuations over the past five years.
As of December 31, 2020, the fixed asset turnover ratio was 26.79, indicating that for every dollar of fixed assets, the company generated $26.79 of revenue. This ratio increased significantly to 37.23 by December 31, 2021, suggesting improved efficiency in asset utilization.
However, in the following years, the fixed asset turnover ratio slightly decreased to 35.87 by December 31, 2022, and further dropped to 29.12 by December 31, 2023. This decline may indicate a decrease in revenue generation relative to the investment in fixed assets during those periods.
By the end of December 31, 2024, the fixed asset turnover ratio decreased even further to 21.59, reflecting a potential decline in efficiency in utilizing fixed assets to generate revenue compared to the previous years.
Overall, while the company initially showed improved efficiency in utilizing fixed assets to generate revenue, the ratio trended downwards in the latter years, suggesting potential challenges in optimizing asset turnover. Further analysis would be required to understand the underlying factors contributing to these fluctuations and to assess the implications for the company's operational performance and financial health.
Peer comparison
Dec 31, 2024