Arcosa Inc (ACA)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,569,900 | 2,307,900 | 2,242,800 | 2,036,400 | 1,935,600 |
| Total assets | US$ in thousands | 4,915,500 | 3,577,900 | 3,340,600 | 3,188,100 | 2,646,700 |
| Total asset turnover | 0.52 | 0.65 | 0.67 | 0.64 | 0.73 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,569,900K ÷ $4,915,500K
= 0.52
Total asset turnover is a financial ratio that indicates how efficiently a company is utilizing its assets to generate revenue. Arcosa Inc's total asset turnover has shown a steady decrease from 0.73 in December 31, 2020, to 0.52 in December 31, 2024. This decline suggests that the company is becoming less effective in generating sales relative to its total assets over this period.
A total asset turnover ratio below 1 indicates that the company is generating less revenue per dollar of assets. A decreasing trend in total asset turnover could point towards inefficiencies in asset utilization, such as excess inventory or underperforming assets.
As an analyst, it would be important to further investigate the reasons behind this declining trend, as it could indicate potential operational issues or the need for strategic adjustments to improve asset efficiency and overall performance.
Peer comparison
Dec 31, 2024