Allegion PLC (ALLE)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,772,200 | 3,650,800 | 3,271,900 | 2,867,400 | 2,719,900 |
| Total assets | US$ in thousands | 4,487,800 | 4,311,500 | 3,991,200 | 3,051,000 | 3,069,400 |
| Total asset turnover | 0.84 | 0.85 | 0.82 | 0.94 | 0.89 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,772,200K ÷ $4,487,800K
= 0.84
Total asset turnover is a key financial ratio that measures a company's efficiency in generating revenue from its total assets. For Allegion PLC, the total asset turnover has been relatively stable over the past five years. Starting at 0.89 in December 2020, it increased to 0.94 by December 2021, indicating that Allegion was able to generate more revenue for each dollar of assets during that period. However, in the following years, the total asset turnover slightly declined to 0.82 in 2022, 0.85 in 2023, and 0.84 in 2024.
This trend suggests that Allegion's ability to efficiently utilize its assets to generate revenue may have decreased slightly in the later years, although the ratio remains within a close range. Investors and stakeholders should continue to monitor Allegion's asset management efficiency to ensure sustained financial performance and growth.