The AES Corporation (AES)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,668,000 | 12,617,000 | 11,141,000 | 9,660,000 | 10,189,000 |
| Total assets | US$ in thousands | 44,799,000 | 38,363,000 | 32,963,000 | 34,603,000 | 33,648,000 |
| Total asset turnover | 0.28 | 0.33 | 0.34 | 0.28 | 0.30 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $12,668,000K ÷ $44,799,000K
= 0.28
The total asset turnover ratio for AES Corp. has shown some fluctuation over the past five years. This ratio indicates the efficiency with which the company generates revenue from its total assets.
In 2023, the total asset turnover ratio decreased to 0.28 from 0.33 in 2022, suggesting a decline in the company's ability to generate revenue from its assets. This could be due to either a decrease in revenue or an increase in total assets during the year.
The total asset turnover ratio was highest in 2021 at 0.34, indicating that the company was able to generate the most revenue relative to its total assets during that period. This suggests a high level of efficiency in asset utilization.
In 2020 and 2019, the total asset turnover ratios were 0.28 and 0.30 respectively, showing a consistent performance in utilizing the company's assets to generate revenue during those years.
Overall, while there have been fluctuations in the total asset turnover ratio of AES Corp. over the five-year period, the company has maintained a reasonable level of efficiency in generating revenue from its total assets.