Maximus Inc (MMS)

Fixed asset turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	5,306,200	5,250,280	5,124,030	4,982,520	4,904,730	4,821,810	4,758,910	4,729,390	4,631,020	4,560,120	4,677,860	4,459,810	4,254,484	4,072,190	3,730,007	3,588,862	3,461,537	3,292,667	3,122,040	3,040,425
Property, plant and equipment	US$ in thousands	38,977	35,020	35,371	34,976	38,831	44,808	46,915	50,181	52,258	55,908	57,945	53,627	62,627	67,794	62,087	62,548	66,721	73,319	80,843	92,377
Fixed asset turnover		136.14	149.92	144.87	142.46	126.31	107.61	101.44	94.25	88.62	81.56	80.73	83.16	67.93	60.07	60.08	57.38	51.88	44.91	38.62	32.91

September 30, 2024 calculation

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

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. Maximus Inc's fixed asset turnover has shown a generally increasing trend over the periods displayed, indicating improved efficiency in utilizing its fixed assets to generate sales. The ratio reached its peak in the most recent quarter at 149.92, suggesting that Maximus Inc generated $149.92 in sales revenue for every dollar invested in fixed assets during that quarter.

The significant increase in fixed asset turnover from 32.91 in December 2019 to over 136 in September 2024 reflects the company's ability to efficiently utilize its fixed assets to drive revenue growth. This improvement may be attributed to effective asset management practices, increased productivity, or strategic investments in assets that contribute positively to revenue generation.

A high fixed asset turnover ratio typically indicates that a company is effectively utilizing its assets to generate sales. Maximus Inc's consistently high fixed asset turnover ratios demonstrate its operational efficiency and effectiveness in generating revenue from its fixed assets. This indicates that Maximus Inc is effectively managing its fixed assets to support its business operations and drive growth.