Amphenol Corporation (APH)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,222,700 | 12,554,700 | 12,623,000 | 10,876,300 | 8,598,900 |
| Total assets | US$ in thousands | 21,440,200 | 16,526,400 | 15,326,200 | 14,678,400 | 12,327,300 |
| Total asset turnover | 0.71 | 0.76 | 0.82 | 0.74 | 0.70 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $15,222,700K ÷ $21,440,200K
= 0.71
The total asset turnover ratio of Amphenol Corporation has shown fluctuating trends over the past five years.
In 2020, the total asset turnover was 0.70, indicating that the company generated $0.70 in sales for every $1 of assets held during that year.
There was a slight improvement in 2021, with the ratio increasing to 0.74, suggesting better efficiency in asset utilization to generate sales.
The total asset turnover continued to increase in 2022, reaching 0.82, which indicates that the company was able to generate higher sales relative to its total assets, reflecting improved asset management and operational efficiency.
However, in 2023, the ratio declined to 0.76, which may signal a decrease in sales generated per dollar of assets, perhaps due to changes in business operations or external factors impacting the company's performance.
By the end of 2024, the total asset turnover ratio decreased further to 0.71, indicating a potential decline in asset efficiency compared to the prior year.
Overall, while there have been fluctuations in the total asset turnover ratio of Amphenol Corporation over the past five years, it is essential for the company to focus on optimizing asset utilization to drive sales and improve overall financial performance.