Alamo Group Inc (ALG)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,628,510 | 1,689,650 | 1,513,620 | 1,334,220 | 1,163,470 |
| Total assets | US$ in thousands | 1,450,280 | 1,409,390 | 1,308,510 | 1,205,740 | 1,109,330 |
| Total asset turnover | 1.12 | 1.20 | 1.16 | 1.11 | 1.05 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,628,510K ÷ $1,450,280K
= 1.12
Total asset turnover is an important efficiency ratio that measures how well a company utilizes its assets to generate revenue. In the case of Alamo Group Inc, the trend shows an increasing total asset turnover over the past five years, indicating an improvement in the company's efficiency in generating sales from its total assets.
The total asset turnover ratios for Alamo Group Inc were 1.05, 1.11, 1.16, 1.20, and 1.12 for the years ending December 31, 2020, 2021, 2022, 2023, and 2024, respectively. This indicates that for every dollar of assets held by the company, it generated $1.05, $1.11, $1.16, $1.20, and $1.12 in sales for the respective years.
The increasing trend up to 2023 suggests that the company was utilizing its assets more efficiently to drive sales growth. However, the slight decrease in 2024 may signal a potential decrease in asset efficiency. It would be important for Alamo Group Inc to closely analyze the underlying factors contributing to this trend to ensure continued operational efficiency and profitability.
Peer comparison
Dec 31, 2024