Alcoa Corp (AA)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,494,000 | 12,326,000 | 11,911,000 | 9,120,000 | 10,296,000 |
| Total assets | US$ in thousands | 14,155,000 | 14,756,000 | 15,025,000 | 14,860,000 | 14,631,000 |
| Total asset turnover | 0.74 | 0.84 | 0.79 | 0.61 | 0.70 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $10,494,000K ÷ $14,155,000K
= 0.74
The total asset turnover ratio for Alcoa Corp has fluctuated over the past five years, ranging from 0.62 in 2020 to 0.84 in 2022. This ratio indicates the company's efficiency in generating sales revenue relative to its total assets.
A lower total asset turnover ratio suggests that the company is not effectively utilizing its assets to generate sales, potentially indicating inefficiencies in operations or excess asset holdings. Conversely, a higher ratio indicates that the company is generating more sales revenue per dollar of assets, which can be a favorable indication of operational efficiency.
In Alcoa Corp's case, the total asset turnover ratio has shown some variability, with a general trend of improvement from 2020 to 2022, followed by a slight decrease in 2023. This improvement suggests that the company has been more effective in utilizing its assets to generate sales revenue during this period.
Analysts may want to further investigate the factors contributing to these fluctuations in the total asset turnover ratio to gain a deeper understanding of Alcoa Corp's operational efficiency and asset management strategies.
Peer comparison
Dec 31, 2023