Robert Half International Inc (RHI)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	6,416,490	7,246,150	6,461,640	5,110,340	6,079,560
Property, plant and equipment	US$ in thousands	108,809	109,687	93,403	109,817	128,385
Fixed asset turnover		58.97	66.06	69.18	46.54	47.35

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,416,490K ÷ $108,809K
= 58.97

Fixed asset turnover measures how efficiently a company is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar invested in fixed assets.

Looking at the trend of Robert Half Inc's fixed asset turnover over the past five years, we observe a fluctuating pattern. The ratio was relatively high in 2021 at 69.18, indicating a significant level of efficiency in utilizing fixed assets to generate sales. However, it decreased slightly in the following years, reaching a value of 58.75 in 2023.

The decrease in the fixed asset turnover ratio in 2023 compared to the previous years suggests that Robert Half Inc may have experienced challenges in optimizing the utilization of its fixed assets to generate sales revenue efficiently. This could be due to factors such as changes in operational efficiency, asset utilization, or sales performance.

It is essential for the company to closely monitor and analyze its fixed asset turnover ratio to identify areas of improvement and implement strategies to enhance the efficiency of its fixed asset utilization. This can help Robert Half Inc maximize its revenue generation potential and overall financial performance in the long term.