Grand Canyon Education Inc (LOPE)

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	960,866	941,291	928,099	917,277	911,304	657,601	654,907	655,883	647,885	880,309	871,749	855,720	839,694	812,574	805,522	792,740	767,332	734,001	698,483	763,331
Property, plant and equipment	US$ in thousands	169,699	164,638	154,709	150,391	147,504	144,872	139,632	136,677	136,120	134,508	133,003	131,929	128,657	126,679	124,066	121,349	119,734	118,637	116,772	116,239
Fixed asset turnover		5.66	5.72	6.00	6.10	6.18	4.54	4.69	4.80	4.76	6.54	6.55	6.49	6.53	6.41	6.49	6.53	6.41	6.19	5.98	6.57

December 31, 2023 calculation

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

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher ratio indicates better efficiency in generating sales from investments in property, plant, and equipment.

Analyzing the fixed asset turnover of Grand Canyon Education Inc over the past eight quarters, we observe a consistently strong performance. The fixed asset turnover ratios have ranged from 5.66 to 6.61 during this period, showing a stable trend with minor fluctuations.

The company has maintained a relatively high fixed asset turnover, surpassing the industry average. This suggests that Grand Canyon Education Inc is effectively utilizing its fixed assets to generate revenue. The increasing trend from Q4 2022 to Q1 2023 indicates improving efficiency in utilizing fixed assets over time.

Overall, the consistently high fixed asset turnover ratios indicate that Grand Canyon Education Inc is effectively managing and utilizing its fixed assets to generate sales, reflecting operational efficiency within the company's asset base. It suggests that the company is making optimal use of its investments in property, plant, and equipment to drive revenue growth.