Smith AO Corporation (AOS)
Total asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,817,100 | 3,891,700 | 3,924,200 | 3,856,200 | 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 |
| Total assets | US$ in thousands | 3,240,000 | 3,154,200 | 3,197,600 | 3,182,200 | 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 |
| Total asset turnover | 1.18 | 1.23 | 1.23 | 1.21 | 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 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $3,817,100K ÷ $3,240,000K
= 1.18
Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its total assets. A higher total asset turnover indicates that the company is utilizing its assets more effectively to generate sales.
Based on the data provided for Smith AO Corporation, we observe fluctuations in the total asset turnover over the reporting periods. The total asset turnover started at 0.96 in March 2020 and showed a decreasing trend until December 2021, reaching a low of 0.91. This decline could indicate inefficiencies in asset utilization during this period.
However, from March 2022 onwards, there is a noticeable improvement in the total asset turnover, with the ratio steadily increasing to 1.23 by December 2024. This upward trend suggests that Smith AO Corporation was able to enhance its efficiency in generating sales from its total assets during this period.
Overall, the increasing trend in total asset turnover from March 2022 to December 2024 indicates an improvement in the company's asset utilization efficiency and effectiveness in generating sales revenue. It showcases the company's ability to optimize its asset base to drive revenue growth and potentially improve profitability.
Peer comparison
Dec 31, 2024