R1 RCM Inc (RCM)
Total 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 | |||
| Total assets | US$ in thousands | 4,960,200 | 5,040,100 | 4,876,800 | 3,425,600 | 5,121,800 | 5,081,100 | 5,075,300 |
| Total asset turnover | 0.45 | 0.44 | 0.48 | 0.70 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $2,252,500K ÷ $4,960,200K
= 0.45
Total asset turnover measures the efficiency with which a company utilizes its assets to generate revenue. A higher total asset turnover indicates that the company is generating more revenue per dollar of assets it owns.
Looking at the trend for R1 RCM Inc., we can observe a consistent improvement in total asset turnover from Q1 2022 to Q4 2023. The ratio has steadily increased from 0.31 in Q1 2022 to 0.45 in Q4 2023.
The ratio was relatively low in Q1 2022 at 0.31, indicating that the company was generating only $0.31 in revenue for every dollar of assets it had. However, there was a significant spike in Q1 2022 with a total asset turnover of 1.06, suggesting a sudden increase in revenue generation efficiency. This spike could be due to various factors such as asset optimization, increased sales, or better asset management practices during that quarter.
From Q2 2022 onwards, the total asset turnover started to stabilize at higher levels compared to the previous quarters, indicating a more efficient utilization of assets to generate revenue. This improvement suggests that the company may have enhanced its operational efficiency, optimized its asset base, or streamlined its business processes effectively.
Overall, the increasing trend in total asset turnover over the quarters signifies an improvement in R1 RCM Inc.'s ability to generate revenue from its asset base, which is a positive indicator of operational efficiency and financial performance. It suggests that the company is effectively managing its assets to drive revenue growth.
Peer comparison
Dec 31, 2023