Smith AO Corporation (AOS)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,840,800 | 3,744,500 | 3,534,600 | 2,888,000 | 2,981,700 |
| Total assets | US$ in thousands | 3,213,900 | 3,332,300 | 3,474,400 | 3,160,700 | 3,058,000 |
| Total asset turnover | 1.20 | 1.12 | 1.02 | 0.91 | 0.98 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,840,800K ÷ $3,213,900K
= 1.20
A.O. Smith Corp.'s total asset turnover has shown a positive trend over the past five years, increasing from 0.98 in 2019 to 1.20 in 2023. This indicates that the company has been generating more revenue relative to its total assets, reflecting improved efficiency in asset utilization. The increasing trend suggests that A.O. Smith Corp. has been more effective in generating sales from its asset base. The company's ability to generate higher sales relative to its total assets can indicate effective management of resources and potentially higher profitability levels. This trend is a positive indicator of the company's operational efficiency and effectiveness in utilizing its assets to drive revenue growth.
Peer comparison
Dec 31, 2023