R1 RCM Inc (RCM)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,252,500 | 2,210,500 | 2,352,200 | 2,406,800 | |||
| Property, plant and equipment | US$ in thousands | 173,700 | 183,600 | 181,800 | 173,800 | 164,800 | 163,000 | 120,000 |
| Fixed asset turnover | 12.97 | 12.04 | 12.94 | 13.85 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,252,500K ÷ $173,700K
= 12.97
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates better efficiency in generating sales from fixed assets.
Looking at the historical trend of R1 RCM Inc.'s fixed asset turnover ratio, we observe fluctuations over the recent quarters. The ratio has been consistently above 10, signifying that the company has been effectively utilizing its fixed assets to generate revenue.
In Q1 2022, the fixed asset turnover ratio was at its peak at 15.98, showing a significant efficiency in generating revenue from fixed assets. However, in the subsequent quarters, the ratio decreased, reaching its lowest point of 10.26 in Q3 2022. This decline could suggest a decrease in revenue generated from fixed assets during that period.
In the latest quarter, Q4 2023, the fixed asset turnover ratio stood at 12.98, indicating an improvement from the previous quarter. This increase suggests that R1 RCM Inc. has been able to enhance its efficiency in utilizing fixed assets to generate revenue.
Overall, R1 RCM Inc. has shown a generally strong performance in terms of fixed asset turnover, with the ratio consistently above 10 in most quarters. Trend analysis of this ratio can provide insights into the company's operational efficiency and its ability to generate revenue from its fixed assets.
Peer comparison
Dec 31, 2023