Adient PLC (ADNT)
Total asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,395,000 | 14,121,000 | 13,680,000 | 12,670,000 | 16,526,000 |
| Total assets | US$ in thousands | 9,424,000 | 9,158,000 | 10,778,000 | 10,261,000 | 10,342,000 |
| Total asset turnover | 1.63 | 1.54 | 1.27 | 1.23 | 1.60 |
September 30, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $15,395,000K ÷ $9,424,000K
= 1.63
The total asset turnover ratio measures the efficiency with which a company utilizes its assets to generate revenue. Adient plc's total asset turnover has shown fluctuations over the past five years, ranging from 1.23 to 1.63.
In 2023, the total asset turnover ratio increased to 1.63 from 1.54 in 2022, indicating that the company generated $1.63 in revenue for every dollar of assets. This could be attributed to more efficient utilization of assets to drive sales.
In 2021 and 2020, the total asset turnover ratio was 1.27 and 1.23, respectively, reflecting a lower level of asset utilization for revenue generation during those years.
The ratio was at its peak in 2019 at 1.60 before decreasing in the subsequent years.
Overall, fluctuations in the total asset turnover ratio may indicate changes in the company's operational efficiency and effectiveness in utilizing its assets to generate sales.
Peer comparison
Sep 30, 2023