Heidrick & Struggles International (HSII)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,041,180 | 1,083,590 | 1,008,470 | 629,370 | 725,614 |
| Property, plant and equipment | US$ in thousands | 35,752 | 30,207 | 27,085 | 23,492 | 28,650 |
| Fixed asset turnover | 29.12 | 35.87 | 37.23 | 26.79 | 25.33 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,041,180K ÷ $35,752K
= 29.12
The fixed asset turnover ratio measures the efficiency with which Heidrick & Struggles International, Inc. generates revenue from its fixed assets. Across the five-year period from 2019 to 2023, the trend in the fixed asset turnover ratio has shown some fluctuations.
In 2019, the fixed asset turnover ratio stood at 25.33, indicating that the company generated $25.33 in revenue for every dollar invested in fixed assets. This ratio increased to 26.79 in 2020, suggesting improved utilization of fixed assets to generate revenue. The ratio further rose to 37.23 in 2021, reflecting a significant increase in efficiency in utilizing fixed assets to generate revenue.
However, the trend reversed in 2022 and 2023. The fixed asset turnover ratio decreased to 35.87 in 2022 and further dropped to 29.12 in 2023. These lower ratios indicate a decline in the efficiency of converting fixed assets into revenue in those years compared to the peak seen in 2021.
Overall, while there have been fluctuations in the fixed asset turnover ratio over the period analyzed, Heidrick & Struggles International, Inc. has generally shown an ability to generate revenue efficiently from its fixed assets, with some variations in performance across the years.
Peer comparison
Dec 31, 2023