ArcBest Corp (ARCB)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,183,830 | 4,422,890 | 5,336,500 | 3,996,140 | 2,942,940 |
| Total assets | US$ in thousands | 2,429,730 | 2,485,090 | 2,494,290 | 2,112,680 | 1,779,010 |
| Total asset turnover | 1.72 | 1.78 | 2.14 | 1.89 | 1.65 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,183,830K ÷ $2,429,730K
= 1.72
Total asset turnover is a financial ratio that measures a company's ability to generate sales from its assets. It indicates how efficiently the company is using its assets to generate revenue.
Analyzing the trend in ArcBest Corp's total asset turnover from 2020 to 2024, we observe fluctuations in the ratio. In 2020, the total asset turnover was 1.65, indicating that the company generated $1.65 in revenue for every $1 of assets.
Over the next few years, there was an overall improving trend in total asset turnover. By the end of 2023, the ratio had increased to 2.14, suggesting that the company was able to generate $2.14 in revenue for every $1 of assets. This improvement indicates that ArcBest Corp became more efficient in utilizing its assets to drive sales.
However, in 2024, the total asset turnover decreased to 1.72, implying a slight decline in efficiency in generating revenue from assets compared to the previous year. Despite this dip, the ratio remains above the 2020 level, indicating that the company continues to utilize its assets relatively efficiently.
Overall, the total asset turnover ratio of ArcBest Corp shows a mixed performance over the years, with significant improvement followed by a minor decline. Continued monitoring of this ratio will be essential to assess the company's asset utilization efficiency in the future.
Peer comparison
Dec 31, 2024