Humana Inc (HUM)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	106,374,000	92,870,000	83,064,000	77,155,000	64,888,000
Property, plant and equipment	US$ in thousands	3,030,000	3,221,000	3,073,000	2,371,000	1,955,000
Fixed asset turnover		35.11	28.83	27.03	32.54	33.19

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $106,374,000K ÷ $3,030,000K
= 35.11

The fixed asset turnover ratio for Humana Inc. has exhibited fluctuations over the past five years. In 2023, the ratio stands at 35.11, representing a significant increase compared to the previous year's ratio of 28.83. This suggests that Humana has generated $35.11 in revenue for every $1 invested in fixed assets during the year.

The upward trend in 2023 indicates that Humana has efficiently utilized its fixed assets to generate revenue, possibly through increased productivity or operational effectiveness. However, it is important to note that a very high fixed asset turnover ratio may also indicate underutilization of fixed assets.

Comparing the 2023 ratio with the ratios from 2021 to 2019, it is evident that there have been fluctuations in the company's efficiency in utilizing fixed assets to generate revenue. The ratios in 2021 and 2012 were 27.03 and 32.54, respectively, showing slightly lower efficiency compared to 2023 but still relatively strong. The ratio dipped to 33.19 in 2019, indicating a temporary decrease in efficiency compared to other years.

Overall, the upward trend in fixed asset turnover for Humana Inc. in 2023 suggests improved efficiency in utilizing fixed assets to generate revenue, reflecting positively on the company's operational performance in the most recent period.