Amphenol Corporation (APH)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,554,700 | 12,623,000 | 10,876,300 | 8,598,900 | 8,225,400 |
| Total assets | US$ in thousands | 16,526,400 | 15,326,200 | 14,678,400 | 12,327,300 | 10,815,500 |
| Total asset turnover | 0.76 | 0.82 | 0.74 | 0.70 | 0.76 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $12,554,700K ÷ $16,526,400K
= 0.76
The total asset turnover ratio of Amphenol Corp. has fluctuated over the past five years. In 2023, the company's total asset turnover was 0.76, indicating that for every dollar of total assets, the company generated $0.76 in sales. This ratio decreased from 0.82 in 2022 and 0.76 in 2019, but it was higher compared to 0.74 in 2021 and 0.70 in 2020.
A lower total asset turnover ratio could suggest that the company is not efficiently utilizing its assets to generate sales, which could raise concerns about operational efficiency. On the other hand, a higher total asset turnover ratio indicates that the company is generating more revenue from its assets, which is generally positive.
It is essential for Amphenol Corp. to analyze the factors contributing to these fluctuations in total asset turnover to identify areas where improvements can be made to enhance operational efficiency and optimize asset utilization for future growth and profitability.