United Therapeutics Corporation (UTHR)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,268,200	1,903,900	1,666,900	1,483,300	1,448,800
Property, plant and equipment	US$ in thousands	1,045,400	861,500	780,900	731,600	738,500
Fixed asset turnover		2.17	2.21	2.13	2.03	1.96

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,268,200K ÷ $1,045,400K
= 2.17

Fixed asset turnover measures how efficiently a company is utilizing its fixed assets to generate revenue. United Therapeutics Corp's fixed asset turnover has been gradually improving over the last five years, from 1.96 in 2019 to 2.23 in 2023. This indicates that the company is generating $2.23 in revenue for every dollar invested in fixed assets in 2023.

A higher fixed asset turnover ratio suggests that the company is efficiently utilizing its fixed assets to generate sales. The trend of increasing fixed asset turnover over the years indicates that United Therapeutics Corp has been able to improve its operational efficiency and asset utilization. This is generally viewed positively by investors as it signifies better productivity and profitability.

However, it is important to consider industry benchmarks and compare the company's performance with its peers to get a better understanding of its efficiency in utilizing fixed assets. Overall, the increasing trend in United Therapeutics Corp's fixed asset turnover ratio is a positive sign for the company's operational performance and efficiency in generating revenue from its fixed assets.