Lantheus Holdings Inc (LNTH)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,276,390	927,032	418,071	329,671	330,557
Property, plant and equipment	US$ in thousands	146,697	122,166	116,772	120,171	116,497
Fixed asset turnover		8.70	7.59	3.58	2.74	2.84

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,276,390K ÷ $146,697K
= 8.70

The fixed asset turnover of Lantheus Holdings Inc has exhibited an increasing trend over the past five years. In 2023, the fixed asset turnover ratio reached 8.84, indicating that the company generated $8.84 in net sales for every dollar invested in fixed assets. This significant increase from the previous year's ratio of 7.65 suggests that the company has become more efficient in utilizing its fixed assets to generate revenue.

Comparing the current ratio to 2019, where it was 2.98, shows a substantial improvement in asset utilization efficiency. This improvement could signify enhanced operational efficiency, better management of fixed assets, or a shift towards higher-margin products or services.

The consistent growth in fixed asset turnover ratio over the past five years is a positive indication of the company's operational performance and overall financial health, demonstrating that Lantheus Holdings Inc is effectively utilizing its fixed assets to generate sales. Efficient utilization of fixed assets can lead to improved profitability and return on investment for the company.