National HealthCare Corporation (NHC)
Total asset turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,141,544 | 1,105,183 | 1,087,541 | 1,076,318 | 1,085,738 | 1,104,619 | 1,110,513 | 1,102,312 | 1,074,302 | 1,050,693 | 1,024,582 | 1,023,066 | 1,028,217 | 1,022,272 | 1,018,713 | 1,004,222 | 996,383 | 991,423 | 990,682 | 985,673 |
| Total assets | US$ in thousands | 1,310,800 | 1,281,910 | 1,280,680 | 1,265,350 | 1,275,450 | 1,295,560 | 1,350,470 | 1,357,010 | 1,403,400 | 1,415,800 | 1,457,370 | 1,355,310 | 1,362,130 | 1,338,780 | 1,335,240 | 1,256,310 | 1,286,650 | 1,307,230 | 1,314,620 | 1,312,300 |
| Total asset turnover | 0.87 | 0.86 | 0.85 | 0.85 | 0.85 | 0.85 | 0.82 | 0.81 | 0.77 | 0.74 | 0.70 | 0.75 | 0.75 | 0.76 | 0.76 | 0.80 | 0.77 | 0.76 | 0.75 | 0.75 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,141,544K ÷ $1,310,800K
= 0.87
The total asset turnover ratio for National Healthcare Corp. has shown a consistent upward trend over the past eight quarters, increasing from 0.77 in Q1 2022 to 0.87 in Q4 2023. This indicates that the company is generating more revenue relative to its total assets.
A total asset turnover ratio of 0.87 in Q4 2023 means that for every $1 of assets the company holds, it generates $0.87 in revenue. This suggests that the company is effectively utilizing its assets to generate sales.
The increasing trend in the total asset turnover ratio can be indicative of improved efficiency in asset management and overall operational performance. It implies that the company is able to generate more revenue with the same level of assets or is able to produce the same level of revenue with fewer assets.
However, it is essential to consider industry norms and peer comparison to evaluate the company's performance effectively. Additionally, further analysis of the company's profitability and liquidity ratios would provide a more comprehensive assessment of its financial health.
Peer comparison
Dec 31, 2023