Strategic Education Inc (STRA)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,135,410	1,068,950	1,135,240	980,332	997,137
Property, plant and equipment	US$ in thousands	118,529	132,845	150,589	158,854	117,029
Fixed asset turnover		9.58	8.05	7.54	6.17	8.52

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,135,410K ÷ $118,529K
= 9.58

The fixed asset turnover ratio for Strategic Education Inc has been fluctuating over the past five years. The ratio indicates how efficiently the company generates revenue from its fixed assets. A higher fixed asset turnover ratio suggests that the company is effectively utilizing its fixed assets to generate sales.

In this case, we can observe an increasing trend in the fixed asset turnover ratio from 6.47 in 2020 to 9.56 in 2023, indicating improved efficiency in generating revenue from fixed assets over the years. However, there was a slight dip in 2022 compared to 2023, but the ratio remains relatively high.

Overall, the increasing trend in the fixed asset turnover ratio suggests that Strategic Education Inc has been effectively utilizing its fixed assets to generate sales and improve operational efficiency over the years, which can be a positive indicator of the company's performance and management of its assets.