Molina Healthcare Inc (MOH)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	40,650,000	34,072,000	31,974,000	27,771,000	19,423,000
Property, plant and equipment	US$ in thousands	1,029,000	932,000	882,000	822,000	752,000
Fixed asset turnover		39.50	36.56	36.25	33.78	25.83

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $40,650,000K ÷ $1,029,000K
= 39.50

Fixed asset turnover is a key financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. In the case of Molina Healthcare Inc, the fixed asset turnover has shown a consistent upward trend over the past five years.

As of December 31, 2020, Molina Healthcare Inc had a fixed asset turnover of 25.83, indicating that the company generated $25.83 in revenue for every dollar invested in fixed assets during that year. The ratio increased to 33.78 by the end of December 31, 2021, and continued to improve to 36.25, 36.56, and 39.50 in the subsequent years of 2022, 2023, and 2024 respectively.

This upward trend in fixed asset turnover signifies that Molina Healthcare Inc has been able to utilize its fixed assets more efficiently over the years, generating more revenue per dollar invested in fixed assets. It suggests improved operational efficiency and effective management of the company's assets, which can contribute to overall profitability and sustainable growth in the long run.