American Woodmark Corporation (AMWD)
Total asset turnover
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,847,500 | 2,066,200 | 1,857,190 | 1,744,010 | 1,645,320 |
| Total assets | US$ in thousands | 1,593,860 | 1,518,800 | 1,632,500 | 1,654,400 | 1,529,930 |
| Total asset turnover | 1.16 | 1.36 | 1.14 | 1.05 | 1.08 |
April 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,847,500K ÷ $1,593,860K
= 1.16
American Woodmark Corporation's total asset turnover has shown variability over the past five years. The ratio has ranged from 1.05 in April 2021 to 1.36 in April 2023, with the most recent value as of April 30, 2024, standing at 1.16.
A total asset turnover ratio of 1.16 indicates that the company generates $1.16 in sales for every dollar of assets it owns. This implies that the company is efficient in utilizing its assets to generate revenue. However, the downward trend from 1.36 in 2023 to 1.16 in 2024 could signify a decrease in asset efficiency or a potential slowdown in sales relative to the assets employed.
It would be essential for the company to further analyze the factors contributing to the fluctuations in the total asset turnover ratio to identify opportunities for improving asset utilization and overall financial performance.