Select Medical Holdings (SEM)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,187,103 | 6,968,550 | 6,873,020 | 6,787,890 | 6,664,060 | 6,586,660 | 6,488,760 | 6,398,970 | 6,333,540 | 6,311,890 | 6,278,320 | 6,257,600 | 6,204,510 | 6,105,190 | 5,994,840 | 5,663,540 | 5,531,710 | 5,445,800 | 5,415,270 | 5,543,910 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 2,187,750 | 1,004,430 | 987,283 | 2,171,180 | 957,353 | 955,752 | 952,926 | 2,040,220 | 936,695 | 1,981,560 | 930,843 | 943,420 | 927,975 | 959,086 | 978,547 |
| Fixed asset turnover | — | — | — | — | — | 3.01 | 6.46 | 6.48 | 2.92 | 6.59 | 6.57 | 6.57 | 3.04 | 6.52 | 3.03 | 6.08 | 5.86 | 5.87 | 5.65 | 5.67 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,187,103K ÷ $—K
= —
Fixed asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its investment in fixed assets. The ratio is calculated by dividing net sales by average fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more efficiently to generate sales.
Looking at the fixed asset turnover data for Select Medical Holdings from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio. The ratio ranged from a high of 6.59 in September 30, 2022, to a low of 2.92 in December 31, 2022. The company experienced a significant improvement in efficiency in utilizing its fixed assets from March 31, 2021, to September 30, 2022, with the ratio consistently above 6.
However, there were fluctuations in the fixed asset turnover ratio in the subsequent periods. The ratio dropped notably in the June 30, 2021, to December 31, 2021, period, and experienced a sharp decline from September 30, 2022, to December 31, 2022. This suggests a potential decrease in sales revenue relative to the investment in fixed assets during these periods.
It is essential for Select Medical Holdings to analyze the reasons behind these fluctuations in fixed asset turnover to identify any inefficiencies in asset utilization or fluctuations in sales performance. Continuous monitoring of the fixed asset turnover ratio can help the company optimize its asset utilization and improve overall operational efficiency in the long term.
Peer comparison
Dec 31, 2024