Amentum Holdings Inc. (AMTM)
Total asset turnover
| Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 8,343,000 | 5,536,000 | 5,183,000 |
| Total assets | US$ in thousands | 11,974,000 | 4,167,000 | 4,220,000 |
| Total asset turnover | 0.70 | 1.33 | 1.23 |
September 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $8,343,000K ÷ $11,974,000K
= 0.70
Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its assets. A higher total asset turnover indicates that the company is utilizing its assets effectively to generate sales.
In the case of Amentum Holdings Inc., the total asset turnover ratio has shown variability over the years. As of December 31, 2022, the total asset turnover was 1.23, indicating that for every dollar of assets, the company generated $1.23 of revenue. This suggests a reasonable level of efficiency in asset utilization.
By December 31, 2023, the total asset turnover increased to 1.33, showing an improvement in efficiency in generating sales from assets. This could be a positive sign of improved operational performance and better asset utilization.
However, the total asset turnover ratio dropped significantly to 0.70 as of September 30, 2024. A lower total asset turnover could indicate that the company may be facing challenges in efficiently utilizing its assets to generate sales revenue, potentially due to changes in business operations, market conditions, or asset management strategies.
Overall, the trend in Amentum Holdings Inc.'s total asset turnover suggests fluctuations in the efficiency of asset utilization over the years, emphasizing the importance of monitoring and analyzing the company's operational performance and asset management practices.
Peer comparison
Sep 30, 2024