Allegion PLC (ALLE)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,553,800 | 3,186,000 | 2,820,400 | 2,668,100 | 2,763,400 |
| Total assets | US$ in thousands | 4,311,500 | 3,991,200 | 3,051,000 | 3,069,400 | 2,967,200 |
| Total asset turnover | 0.82 | 0.80 | 0.92 | 0.87 | 0.93 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,553,800K ÷ $4,311,500K
= 0.82
Total asset turnover measures how efficiently a company generates revenue relative to its total assets. Allegion plc's total asset turnover has fluctuated over the past five years, ranging from 0.82 to 0.96. In 2023, the total asset turnover stood at 0.85, indicating that the company generated $0.85 in revenue for every dollar of assets. This suggests a slight improvement compared to 2022 (0.82). However, it is lower than the ratios recorded in 2021 (0.94), 2020 (0.89), and 2019 (0.96). The decreasing trend in total asset turnover may signal inefficiencies in asset utilization or a slowdown in revenue generation relative to asset growth. Further analysis of Allegion plc's operations and strategy may be required to understand the drivers behind these fluctuations and to identify potential areas for improvement.