Smith AO Corporation (AOS)
Total asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,840,800 | 3,786,500 | 3,723,200 | 3,730,700 | 3,744,500 | 3,805,900 | 3,847,700 | 3,742,800 | 3,534,600 | 3,375,000 | 3,219,800 | 3,022,300 | 2,889,000 | 2,805,400 | 2,772,100 | 2,872,700 | 2,984,200 | 3,045,800 | 3,072,800 | 3,141,800 |
| Total assets | US$ in thousands | 3,213,900 | 3,200,100 | 3,248,800 | 3,336,300 | 3,332,300 | 3,231,900 | 3,321,400 | 3,434,900 | 3,474,400 | 3,300,000 | 3,140,200 | 3,106,800 | 3,160,700 | 2,971,100 | 2,984,200 | 2,983,000 | 3,058,000 | 3,067,900 | 3,175,600 | 3,143,500 |
| Total asset turnover | 1.20 | 1.18 | 1.15 | 1.12 | 1.12 | 1.18 | 1.16 | 1.09 | 1.02 | 1.02 | 1.03 | 0.97 | 0.91 | 0.94 | 0.93 | 0.96 | 0.98 | 0.99 | 0.97 | 1.00 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $3,840,800K ÷ $3,213,900K
= 1.20
Based on the data provided, A.O. Smith Corp.'s total asset turnover has shown some variability over the quarters. Total asset turnover measures the efficiency with which the company is utilizing its assets to generate revenue. A higher total asset turnover ratio is generally preferred as it indicates that the company is effectively using its assets to generate sales.
In the given quarters, A.O. Smith Corp.'s total asset turnover ranged from 1.09 to 1.20. The fluctuations in the total asset turnover ratio suggest changes in the company's ability to generate sales relative to its asset base during those periods.
Notably, the total asset turnover ratio peaked at 1.20 in Q4 2023, indicating that A.O. Smith Corp. was able to generate $1.20 in revenue for every $1 of assets during that period. This may imply a more efficient utilization of assets compared to previous quarters. Conversely, the lowest total asset turnover ratio of 1.09 was observed in Q1 2022, indicating a relatively lower level of efficiency in asset utilization to generate revenue during that quarter.
Overall, it is essential for stakeholders to monitor A.O. Smith Corp.'s total asset turnover ratio consistently to assess the company's efficiency in utilizing its assets to drive sales and revenue generation.
Peer comparison
Dec 31, 2023