HealthStream Inc (HSTM)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	291,646	287,991	285,235	282,877	279,063	277,019	273,965	270,405	266,826	262,628	259,434	258,612	256,713	254,193	250,985	246,722	244,826	245,703	247,270	250,498
Property, plant and equipment	US$ in thousands	—	—	—	—	—	—	14,461	14,689	38,242	39,001	40,441	17,070	43,118	44,202	45,900	20,653	22,218	21,793	22,936	24,425
Fixed asset turnover		—	—	—	—	—	—	18.95	18.41	6.98	6.73	6.42	15.15	5.95	5.75	5.47	11.95	11.02	11.27	10.78	10.26

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $291,646K ÷ $—K
= —

The fixed asset turnover ratio is a financial metric that measures a company's ability to generate sales revenue from its investment in fixed assets, such as property, plant, and equipment. A higher fixed asset turnover ratio indicates that a company is utilizing its fixed assets more efficiently to generate sales.

In the case of HealthStream Inc, the fixed asset turnover ratio has shown fluctuation over the period mentioned in the data. The ratio increased from 10.26 in March 2020 to a peak of 18.95 in June 2023, suggesting improved efficiency in utilizing its fixed assets to generate sales.

However, there was a notable decline in the fixed asset turnover ratio in the subsequent quarters, dropping to 5.47 in June 2021. This sharp decrease may indicate a decrease in sales relative to the investment in fixed assets during that period.

The ratio gradually improved in the following quarters, reaching 6.98 by December 2022. This suggests that HealthStream Inc was able to enhance its ability to generate sales revenue from its fixed assets.

The data for the periods beyond September 2023 is not available, as denoted by the absence of values for those quarters. This lack of data makes it challenging to assess the trend of the fixed asset turnover ratio in those periods.

Overall, the analysis of HealthStream Inc's fixed asset turnover ratio indicates both positive and negative trends in the company's efficiency in utilizing its fixed assets to generate sales revenue. It is essential for the company to maintain or improve this ratio to ensure optimal utilization of its fixed assets and sustainable revenue generation.