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', HCM's fixed asset turnover was 6.70, illustrating how efficiently fixed assets are generating revenue. Industry average for Biotechnology: Pharmaceutical Preparations in '2021' stood at 1.49.
• In '2022', HCM's fixed asset turnover was 6.19, illustrating how efficiently fixed assets are generating revenue. The decline from '2021' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2022' stood at 1.43. Industry average declined by 0.06 from previous year.
• In '2023', HCM's fixed asset turnover was 8.86, illustrating how efficiently fixed assets are generating revenue. The increase since '2022' reflects strengthening financial performance. Industry average for Biotechnology: Pharmaceutical Preparations in '2023' stood at 1.31. Industry average declined by 0.12 from previous year.
• In '2024', HCM's fixed asset turnover was 6.26, illustrating how efficiently fixed assets are generating revenue. The decline from '2023' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2024' stood at 1.42. Industry average increased by 0.11 compared to previous year.
Overall, HCM's fixed asset turnover has been volatile but showed a downward trend 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.