Name: Fixed Asset Turnover

Definition: Fixed asset turnover shows how well the company’s long-term physical assets — factories, equipment, property — are being used to generate sales. A high ratio means the company’s facilities are productive and efficient. A low ratio might signal underused assets or over-investment in equipment that isn’t driving enough sales.

Interpretation:
• In '2021', CHE's fixed asset turnover was 6.71, illustrating how efficiently fixed assets are generating revenue. Industry average for Medical/Nursing Services in '2021' stood at 3.36.
• In '2022', CHE's fixed asset turnover was 6.53, illustrating how efficiently fixed assets are generating revenue. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2022' stood at 4.38. Industry average increased by 1.02 compared to previous year.
• In '2023', CHE's fixed asset turnover was 6.80, illustrating how efficiently fixed assets are generating revenue. The increase since '2022' reflects strengthening financial performance. Industry average for Medical/Nursing Services in '2023' stood at 5.05. Industry average increased by 0.68 compared to previous year.
• In '2024', CHE's fixed asset turnover was 7.39, illustrating how efficiently fixed assets are generating revenue. The increase since '2023' reflects strengthening financial performance. Industry average for Medical/Nursing Services in '2024' stood at 3.43. Industry average declined by 1.62 from previous year.
Overall, CHE's fixed asset turnover has steadily improved over the past 4 years.

Formula: Fixed Asset Turnover = Net Sales / Net Fixed Assets

Good Range: Ranges from 1 to 5 depending on asset intensity.