HealthStream Inc (HSTM)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	279,063	266,851	256,691	244,826	254,112
Total assets	US$ in thousands	499,942	497,741	486,753	500,313	489,544
Total asset turnover		0.56	0.54	0.53	0.49	0.52

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $279,063K ÷ $499,942K
= 0.56

Healthstream Inc's total asset turnover ratio has shown a fluctuating trend over the past five years, ranging from 0.49 in 2020 to 0.56 in 2023. This ratio indicates the company's ability to generate revenue relative to its total assets. A higher ratio is generally preferred as it suggests that the company is more efficient in utilizing its assets to generate sales.

The slight increase in total asset turnover from 0.52 in 2019 to 0.56 in 2023 may indicate improved asset utilization efficiency. However, it is important to note that the ratio has not shown a consistent upward trend, which may suggest that the company's asset management efficiency has been somewhat volatile over the years.

Overall, Healthstream Inc should continue to monitor and work towards improving its total asset turnover ratio to ensure optimal utilization of its assets in generating revenue.