The AES Corporation (AES)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,278,000 | 12,668,000 | 12,617,000 | 11,141,000 | 9,660,000 |
| Total assets | US$ in thousands | 47,406,000 | 44,799,000 | 38,363,000 | 32,963,000 | 34,603,000 |
| Total asset turnover | 0.26 | 0.28 | 0.33 | 0.34 | 0.28 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $12,278,000K ÷ $47,406,000K
= 0.26
The total asset turnover ratio for The AES Corporation has shown some fluctuations over the past five years. It stood at 0.28 in December 31, 2020, indicating that the company generated $0.28 in revenue for every dollar of assets it had. The ratio improved to 0.34 by December 31, 2021, suggesting that the company became more efficient in utilizing its assets to generate revenue.
However, the total asset turnover dipped slightly to 0.33 by December 31, 2022, before decreasing further to 0.28 by December 31, 2023. This decline may indicate challenges in effectively leveraging assets to drive revenue during those periods.
By December 31, 2024, the total asset turnover ratio dropped to 0.26, signaling a continued decrease in asset efficiency in generating revenue. Overall, it is essential for The AES Corporation to closely monitor and improve its asset management strategies to enhance its operational efficiency and profitability over time.