Smith AO Corporation (AOS)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,818,100 | 3,840,800 | 3,744,500 | 3,534,600 | 2,888,000 |
| Total assets | US$ in thousands | 3,240,000 | 3,213,900 | 3,332,300 | 3,474,400 | 3,160,700 |
| Total asset turnover | 1.18 | 1.20 | 1.12 | 1.02 | 0.91 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,818,100K ÷ $3,240,000K
= 1.18
Smith AO Corporation's total asset turnover has shown a positive trend over the past five years, increasing consistently from 0.91 in December 31, 2020 to 1.18 in December 31, 2024. This indicates that the company is generating more revenue relative to its total assets each year, reflecting improved efficiency in utilizing its assets to generate sales.
The gradual improvement in total asset turnover suggests that Smith AO Corporation has been effectively managing its assets to drive revenue growth. A higher total asset turnover ratio signifies that the company is generating more sales for each dollar invested in assets, which can be a positive indicator of operational efficiency and financial performance.
However, it is worth noting that there was a slight dip in the total asset turnover ratio in December 31, 2024 compared to the previous year. This could be a point of concern and may require further analysis to understand the underlying reasons for this decrease. Overall, the increasing trend in total asset turnover for Smith AO Corporation demonstrates improved asset utilization and efficiency in generating revenue, which can be viewed positively by investors and stakeholders.
Peer comparison
Dec 31, 2024