HealthStream Inc (HSTM)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 291,646 | 279,063 | 266,826 | 256,712 | 244,826 |
| Total assets | US$ in thousands | 510,766 | 499,942 | 497,741 | 486,753 | 500,313 |
| Total asset turnover | 0.57 | 0.56 | 0.54 | 0.53 | 0.49 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $291,646K ÷ $510,766K
= 0.57
Total asset turnover is a key financial ratio that measures a company's ability to generate sales revenue from its assets. For HealthStream Inc, the trend in total asset turnover from December 31, 2020, to December 31, 2024, shows a gradual improvement. The ratio increased from 0.49 in 2020 to 0.57 in 2024, indicating that the company is becoming more efficient in utilizing its assets to generate sales.
A total asset turnover ratio of less than 1 typically suggests that a company is not efficiently utilizing its assets to generate sales. In HealthStream Inc's case, the ratio has been consistently below 1, suggesting that there may be room for improvement in asset efficiency.
Overall, the increasing trend in total asset turnover for HealthStream Inc is a positive sign as it indicates the company's improving ability to generate sales revenue relative to its total assets. However, management should continue to focus on optimizing asset utilization to further enhance operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2024