HealthStream Inc (HSTM)

Total 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
Total assets	US$ in thousands	510,766	502,831	499,555	511,605	499,942	498,050	493,474	503,159	497,741	481,197	477,704	483,926	486,753	494,714	496,302	501,682	500,313	476,557	477,825	481,511
Total asset turnover		0.57	0.57	0.57	0.55	0.56	0.56	0.56	0.54	0.54	0.55	0.54	0.53	0.53	0.51	0.51	0.49	0.49	0.52	0.52	0.52

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $291,646K ÷ $510,766K
= 0.57

Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its investments in assets. HealthStream Inc's total asset turnover has shown a stable trend over time, ranging between 0.49 to 0.57 from March 31, 2020, to December 31, 2024. The ratio fluctuated within this range but generally improved slightly from the initial value.

A total asset turnover of less than 1 indicates that the company is generating less revenue per dollar of assets, which could point to underutilization of assets or potentially inefficient operations. In HealthStream Inc's case, the ratios show that the company generated around half a dollar to slightly over half a dollar in sales for every dollar of assets during the period.

The slight increase in total asset turnover over time suggests that HealthStream Inc has been able to improve its efficiency in generating sales from its asset base. However, it would be beneficial for the company to further analyze and work on optimizing its asset utilization to increase revenue generation in relation to its assets.