Humana Inc (HUM)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	106,374,000	102,351,000	98,727,000	95,642,000	92,870,000	91,485,000	89,383,000	86,366,000	83,064,000	81,072,000	80,450,000	78,888,000	77,155,000	74,388,000	70,554,000	67,716,000	64,888,000	62,761,000	60,726,000	58,740,000
Property, plant and equipment	US$ in thousands	3,030,000	3,342,000	3,309,000	3,234,000	3,221,000	3,218,000	3,121,000	3,189,000	3,073,000	2,898,000	2,690,000	2,507,000	2,371,000	2,228,000	2,118,000	2,023,000	1,955,000	1,864,000	1,796,000	1,754,000
Fixed asset turnover		35.11	30.63	29.84	29.57	28.83	28.43	28.64	27.08	27.03	27.98	29.91	31.47	32.54	33.39	33.31	33.47	33.19	33.67	33.81	33.49

December 31, 2023 calculation

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

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. The formula for fixed asset turnover is net sales divided by average fixed assets. A higher fixed asset turnover indicates that the company is efficiently utilizing its fixed assets to generate revenue.

Analyzing the fixed asset turnover trend of Humana Inc. from Q1 2022 to Q4 2023, we observe a generally increasing trend. The fixed asset turnover has improved from 27.08 in Q1 2022 to 35.11 in Q4 2023. This suggests that Humana Inc. has been able to generate more revenue from its fixed assets over time.

The increase in fixed asset turnover indicates that Humana Inc. has been effectively deploying its fixed assets to generate sales. This could be due to factors such as operational efficiencies, better asset utilization, or increased demand for the company's services.

Overall, the upward trend in fixed asset turnover for Humana Inc. reflects positively on the company's operational efficiency and management of its fixed assets. It shows that the company is maximizing the potential of its fixed assets to drive revenue growth.