Maximus Inc (MMS)

Fixed asset turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	5,306,200	4,904,730	4,631,020	4,254,480	3,461,540
Property, plant and equipment	US$ in thousands	38,977	38,831	52,258	62,627	66,721
Fixed asset turnover		136.14	126.31	88.62	67.93	51.88

September 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,306,200K ÷ $38,977K
= 136.14

Fixed asset turnover measures how efficiently a company utilizes its fixed assets to generate sales. Maximus Inc's fixed asset turnover has been showing a positive trend over the past five years. The ratio has increased from 51.88 in 2020 to 136.14 in 2024, indicating that Maximus Inc has been able to generate significantly higher sales relative to its investment in fixed assets.

This improvement suggests that Maximus Inc has been effectively utilizing its fixed assets to drive revenue growth and increase operational efficiency. A higher fixed asset turnover indicates that the company is generating more revenue per dollar invested in fixed assets, which is a positive sign of operational efficiency and effective asset management.

Overall, the increasing trend in Maximus Inc's fixed asset turnover ratio reflects the company's ability to generate more sales from its fixed asset base, which is a key indicator of operational performance and efficiency.