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', MHH's fixed asset turnover was 27.99, illustrating how efficiently fixed assets are generating revenue. Industry average for Professional Services in '2021' stood at 6.12.
• In '2022', MHH's fixed asset turnover was 33.45, illustrating how efficiently fixed assets are generating revenue. The increase since '2021' reflects strengthening financial performance. Industry average for Professional Services in '2022' stood at 6.14. Industry average increased by 0.01 compared to previous year.
• In '2023', MHH's fixed asset turnover was 29.64, illustrating how efficiently fixed assets are generating revenue. The decline from '2022' may indicate some operational or financial challenges. Industry average for Professional Services in '2023' stood at 6.59. Industry average increased by 0.46 compared to previous year.
• In '2024', MHH's fixed asset turnover was 30.97, illustrating how efficiently fixed assets are generating revenue. The increase since '2023' reflects strengthening financial performance. Industry average for Professional Services in '2024' stood at 5.43. Industry average declined by 1.16 from previous year.
Overall, MHH'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.