Alamo Group Inc (ALG)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,689,650 | 1,513,620 | 1,334,220 | 1,163,470 | 1,119,140 |
| Total assets | US$ in thousands | 1,409,390 | 1,308,510 | 1,205,740 | 1,121,860 | 1,212,760 |
| Total asset turnover | 1.20 | 1.16 | 1.11 | 1.04 | 0.92 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,689,650K ÷ $1,409,390K
= 1.20
Alamo Group Inc.'s total asset turnover has been showing a positive trend over the past five years, increasing from 0.92 in 2019 to 1.20 in 2023. This indicates that the company is generating more revenue relative to its total assets, which suggests improved efficiency in asset utilization. A total asset turnover above 1 indicates that the company is generating more in sales than the value of its assets, which is a positive sign for investors and creditors. The consistent improvement in this ratio over the years reflects Alamo Group's ability to effectively utilize its assets to generate sales and drive business growth.
Peer comparison
Dec 31, 2023