Grand Canyon Education Inc (LOPE)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	960,866	911,304	897,963	839,694	767,332
Property, plant and equipment	US$ in thousands	169,699	147,504	136,120	128,657	119,734
Fixed asset turnover		5.66	6.18	6.60	6.53	6.41

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $960,866K ÷ $169,699K
= 5.66

Fixed asset turnover measures how efficiently Grand Canyon Education Inc is generating revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets effectively to generate sales.

Over the past five years, Grand Canyon Education Inc's fixed asset turnover has shown a generally decreasing trend. The ratio decreased from 6.50 in 2019 to 5.66 in 2023. This suggests that the company's ability to generate revenue from its fixed assets has slightly declined over the years.

Although the current ratio of 5.66 is lower compared to previous years, it still indicates that the company is generating $5.66 in revenue for every dollar invested in fixed assets. This implies that Grand Canyon Education Inc is effectively utilizing its fixed assets to generate sales, albeit at a slightly lower efficiency compared to previous years.

Overall, while the trend in fixed asset turnover has shown a decline, Grand Canyon Education Inc continues to efficiently generate revenue from its fixed assets, albeit at a slightly lower rate compared to the earlier periods.