Archrock Inc (AROC)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 889,048 | 784,803 | 703,584 | 775,926 | 873,167 |
| Total assets | US$ in thousands | 2,655,950 | 2,598,750 | 2,589,970 | 2,779,720 | 3,109,980 |
| Total asset turnover | 0.33 | 0.30 | 0.27 | 0.28 | 0.28 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $889,048K ÷ $2,655,950K
= 0.33
The total asset turnover of Archrock Inc has shown a fluctuating trend over the past five years. The ratio increased from 0.31 in 2019 to 0.37 in 2023, indicating an improvement in the company's ability to generate sales from its total assets.
A total asset turnover ratio of 0.37 in 2023 means that for every dollar of total assets, the company generated $0.37 in sales. This suggests that Archrock Inc has been more efficient in utilizing its assets to generate revenue compared to previous years.
It is important to note that while the total asset turnover has improved, it is still relatively low, indicating that there might be opportunities for the company to further enhance its asset utilization efficiency.
Overall, the increasing trend in total asset turnover reflects positively on Archrock Inc's operational efficiency and effectiveness in generating sales from its asset base over the years.
Peer comparison
Dec 31, 2023