Molina Healthcare Inc (MOH)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 34,072,000 | 31,974,000 | 27,771,000 | 19,423,000 | 16,829,000 |
| Property, plant and equipment | US$ in thousands | 932,000 | 882,000 | 822,000 | 752,000 | 687,000 |
| Fixed asset turnover | 36.56 | 36.25 | 33.78 | 25.83 | 24.50 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $34,072,000K ÷ $932,000K
= 36.56
Molina Healthcare Inc's fixed asset turnover ratio has shown some fluctuations over the past five years. The ratio has significantly increased from 49.68 in 2020 to 126.19 in 2023, indicating that the company generated $126.19 in revenue for each dollar invested in fixed assets. This substantial increase suggests that Molina Healthcare has become more efficient in utilizing its fixed assets to generate revenue.
Although the fixed asset turnover ratio was relatively high in 2019 at 107.19, it decreased in 2021 to 70.13 before rebounding in the following years. The dip in 2021 may have been due to a lower level of revenue generation relative to the investment in fixed assets at that time.
Overall, the increasing trend in the fixed asset turnover ratio of Molina Healthcare Inc suggests improved efficiency and productivity in utilizing its fixed assets to generate revenue over the years, which is a positive indicator of the company's operational performance.
Peer comparison
Dec 31, 2023