Amphenol Corporation (APH)
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 | 12,554,600 | 12,466,300 | 12,562,300 | 12,645,200 | 12,623,100 | 12,410,700 | 11,934,000 | 11,451,100 | 10,876,300 | 10,275,500 | 9,780,400 | 9,114,000 | 8,598,900 | 8,323,900 | 8,101,100 | 8,128,900 | 8,225,400 | 8,299,100 | 8,327,500 | 8,293,600 |
| Total assets | US$ in thousands | 16,526,400 | 15,759,000 | 15,237,900 | 15,381,500 | 15,326,200 | 15,097,900 | 14,986,100 | 14,873,600 | 14,678,400 | 14,926,100 | 14,559,100 | 13,133,500 | 12,327,300 | 11,753,900 | 11,203,900 | 12,077,700 | 10,815,500 | 10,683,600 | 10,634,000 | 10,208,100 |
| Total asset turnover | 0.76 | 0.79 | 0.82 | 0.82 | 0.82 | 0.82 | 0.80 | 0.77 | 0.74 | 0.69 | 0.67 | 0.69 | 0.70 | 0.71 | 0.72 | 0.67 | 0.76 | 0.78 | 0.78 | 0.81 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $12,554,600K ÷ $16,526,400K
= 0.76
Total asset turnover measures the efficiency with which a company utilizes its total assets to generate revenue. In the case of Amphenol Corp., the total asset turnover has been relatively steady over the past eight quarters, ranging from 0.76 to 0.82. This indicates that, on average, for each dollar of total assets Amphenol has, it generates between $0.76 and $0.82 in revenue.
While the figures show a consistent performance in terms of asset utilization, it is essential to consider industry norms and benchmarks for a more comprehensive evaluation. A total asset turnover ratio below 1 may suggest that Amphenol could potentially improve its asset utilization to generate more revenue. On the other hand, a ratio above 1 may indicate efficient asset management, but it could also imply aggressive sales practices.
To better assess Amphenol's operational efficiency and financial health, it would be beneficial to analyze other related ratios and metrics in conjunction with total asset turnover, such as profitability ratios, liquidity ratios, and financial leverage ratios. These additional insights can provide a more holistic view of Amphenol's performance and help identify areas for improvement or further strength.