Select Medical Holdings (SEM)
Fixed 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 | 6,457,510 | 6,760,560 | 6,682,750 | 6,601,130 | 6,549,040 | 6,498,680 | 6,476,780 | 6,463,510 | 6,411,730 | 6,009,720 | 5,899,480 | 5,562,470 | 5,416,770 | 5,330,860 | 5,258,810 | 5,373,360 | 5,278,660 | 5,168,760 | 5,115,800 | 5,051,950 |
| Property, plant and equipment | US$ in thousands | 1,023,560 | 1,006,840 | 1,004,430 | 987,283 | 1,001,440 | 957,353 | 955,752 | 952,926 | 961,467 | 936,695 | 928,226 | 930,843 | 943,420 | 927,975 | 959,086 | 978,547 | 998,406 | 997,467 | 1,008,560 | 972,807 |
| Fixed asset turnover | 6.31 | 6.71 | 6.65 | 6.69 | 6.54 | 6.79 | 6.78 | 6.78 | 6.67 | 6.42 | 6.36 | 5.98 | 5.74 | 5.74 | 5.48 | 5.49 | 5.29 | 5.18 | 5.07 | 5.19 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,457,510K ÷ $1,023,560K
= 6.31
The fixed asset turnover ratio measures how effectively a company is utilizing its fixed assets to generate revenue. Select Medical Holdings Corporation has demonstrated consistent performance in this regard over the past eight quarters. The ratio has remained relatively stable, ranging from 6.32 to 6.59, indicating that the company is generating around $6.32 to $6.59 in revenue for every dollar invested in fixed assets.
A high fixed asset turnover ratio suggests efficient use of fixed assets to generate sales, which is generally a positive sign for investors. Select Medical's ratios above 6 indicate that the company is efficiently utilizing its fixed assets to generate revenue.
Overall, the trend in Select Medical's fixed asset turnover ratio shows that the company has been effectively managing its investment in fixed assets to drive revenue growth consistently over the quarters analyzed.
Peer comparison
Dec 31, 2023