AdvanSix Inc (ASIX)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,524,830 | 1,942,860 | 1,679,600 | 1,150,210 | 1,290,570 |
| Total assets | US$ in thousands | 1,496,020 | 1,495,330 | 1,312,000 | 1,263,410 | 1,235,970 |
| Total asset turnover | 1.02 | 1.30 | 1.28 | 0.91 | 1.04 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,524,830K ÷ $1,496,020K
= 1.02
The total asset turnover ratio for AdvanSix Inc fluctuated over the past five years. In 2023, the total asset turnover was 1.03, indicating that the company generated $1.03 in revenue for every dollar of assets it held. This represents a decrease from the previous year's ratio of 1.30. The decrease in total asset turnover could suggest that AdvanSix Inc was less efficient in generating revenue from its assets in 2023 compared to 2022.
Furthermore, when comparing the total asset turnover ratio of 2023 to earlier years, it can be observed that the ratio was lower than in 2021 and 2019 but higher than in 2020. The variation in total asset turnover ratios over the years may reflect changes in the company's asset management efficiency and its ability to generate sales from its invested capital.
Overall, the decreasing trend in total asset turnover from 2022 to 2023 indicates a potential decline in AdvanSix Inc's efficiency in utilizing its assets to generate revenue in the most recent fiscal year. It would be advisable for the company to undertake a thorough analysis of its asset management strategies to improve its overall operational efficiency and profitability.
Peer comparison
Dec 31, 2023