The Andersons Inc (ANDE)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,257,500 | 14,750,100 | 17,325,400 | 12,612,000 | 8,064,620 |
| Total assets | US$ in thousands | 4,121,310 | 3,855,010 | 4,608,000 | 4,569,220 | 4,272,120 |
| Total asset turnover | 2.73 | 3.83 | 3.76 | 2.76 | 1.89 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $11,257,500K ÷ $4,121,310K
= 2.73
Total asset turnover is a key financial ratio that measures the efficiency of a company in generating sales revenue from its asset base. For The Andersons Inc, the total asset turnover has shown a fluctuating trend over the past five years.
In December 31, 2020, the total asset turnover was 1.89, indicating that the company generated $1.89 in sales for every $1 of assets. The ratio improved significantly over the next few years and reached 3.83 by December 31, 2023, highlighting a substantial increase in sales generated per dollar of assets.
However, in December 31, 2024, the total asset turnover dropped to 2.73, reflecting a decrease in the efficiency of asset utilization for revenue generation. Overall, the increasing trend in total asset turnover from 2020 to 2023 suggests that The Andersons Inc managed its assets more effectively to drive sales growth.
It is important for the company to closely monitor its asset turnover ratio to ensure efficient utilization of resources and continued success in maximizing revenue generation from its asset base.
Peer comparison
Dec 31, 2024