Heidrick & Struggles International (HSII)
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 | 1,041,182 | 1,022,461 | 1,012,836 | 1,040,168 | 1,083,586 | 1,132,110 | 1,139,154 | 1,099,280 | 1,008,474 | 883,468 | 762,654 | 649,254 | 629,370 | 651,832 | 693,849 | 724,187 | 725,614 | 731,932 | 737,755 | 747,271 |
| Property, plant and equipment | US$ in thousands | 35,752 | 34,034 | 33,330 | 32,517 | 30,207 | 29,317 | 27,294 | 27,162 | 27,085 | 20,939 | 22,682 | 22,373 | 23,492 | 26,740 | 28,577 | 28,450 | 28,650 | 29,356 | 30,788 | 32,292 |
| Fixed asset turnover | 29.12 | 30.04 | 30.39 | 31.99 | 35.87 | 38.62 | 41.74 | 40.47 | 37.23 | 42.19 | 33.62 | 29.02 | 26.79 | 24.38 | 24.28 | 25.45 | 25.33 | 24.93 | 23.96 | 23.14 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,041,182K ÷ $35,752K
= 29.12
Heidrick & Struggles International, Inc.'s fixed asset turnover ratio has shown a declining trend over the past eight quarters, dropping from 41.74 in Q2 2022 to 29.12 in Q4 2023. This indicates that the company is generating less revenue relative to its fixed assets.
A high fixed asset turnover ratio is generally considered favorable as it suggests that the company is effectively utilizing its fixed assets to generate sales. The decreasing trend observed in Heidrick & Struggles International, Inc.'s fixed asset turnover may indicate inefficiencies in asset utilization or a decline in sales relative to fixed assets.
It is important for the company to closely monitor and analyze the reasons behind this declining trend in fixed asset turnover to identify potential areas of improvement. This could involve reassessing asset management strategies, seeking ways to enhance operational efficiency, or exploring opportunities to increase sales generated by existing fixed assets.
Overall, the declining fixed asset turnover ratio for Heidrick & Struggles International, Inc. warrants further investigation and potential strategic adjustments to optimize the utilization of fixed assets and improve overall financial performance.
Peer comparison
Dec 31, 2023