Alcoa Corp (AA)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,895,000 | 10,551,000 | 12,451,000 | 12,152,000 | 9,286,000 |
| Total assets | US$ in thousands | 14,065,000 | 14,155,000 | 14,756,000 | 15,025,000 | 14,860,000 |
| Total asset turnover | 0.85 | 0.75 | 0.84 | 0.81 | 0.62 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $11,895,000K ÷ $14,065,000K
= 0.85
The total asset turnover ratio for Alcoa Corp has shown a fluctuating trend over the past five years. Starting at 0.62 in December 31, 2020, it increased to 0.81 by December 31, 2021, indicating that the company generated $0.81 in revenue for every dollar of assets owned. Subsequently, there was a further increase to 0.84 by December 31, 2022, suggesting more efficient utilization of assets to generate revenue.
However, by December 31, 2023, the total asset turnover ratio decreased to 0.75, reflecting a potential decline in the company's ability to generate revenue from its assets. Notably, there was a rebound in the ratio to 0.85 by December 31, 2024, which may indicate improved asset management efficiency and revenue generation capabilities.
Overall, the total asset turnover ratio for Alcoa Corp has shown variability, with some improvements over the years. It is important for the company to sustain or enhance this ratio to optimize its asset utilization and drive profitability in the long term.
Peer comparison
Dec 31, 2024