National HealthCare Corporation (NHC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,141,540 | 1,085,740 | 1,074,300 | 1,028,220 | 996,383 |
| Property, plant and equipment | US$ in thousands | 493,329 | 506,532 | 520,996 | 520,318 | 535,430 |
| Fixed asset turnover | 2.31 | 2.14 | 2.06 | 1.98 | 1.86 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,141,540K ÷ $493,329K
= 2.31
Over the past five years, National Healthcare Corp.'s fixed asset turnover ratio has shown a generally increasing trend, indicating improvement in the company's efficiency in generating sales revenue relative to its investment in fixed assets. The ratio has increased from 1.86 in 2019 to 2.30 in 2023. This suggests that the company is utilizing its fixed assets more effectively to generate revenue.
A fixed asset turnover ratio of 2.30 in 2023 means that for every dollar invested in fixed assets, National Healthcare Corp. generated $2.30 in sales revenue. This indicates that the company is efficiently utilizing its fixed assets to drive revenue growth.
The consistent improvement in the fixed asset turnover ratio over the years could be attributed to better asset management practices, operational efficiency, or strategic investments in fixed assets. It reflects positively on the company's ability to maximize the productivity of its fixed assets and indicates a healthy level of asset utilization.
Overall, the increasing trend in National Healthcare Corp.'s fixed asset turnover ratio indicates improving efficiency and effectiveness in utilizing its fixed assets to drive revenue generation, which is a positive signal for the company's financial performance and operational effectiveness.
Peer comparison
Dec 31, 2023