Astec Industries Inc (ASTE)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,332,400 | 1,271,800 | 1,095,400 | 1,030,400 | 1,167,370 |
| Total assets | US$ in thousands | 1,059,300 | 1,014,400 | 905,800 | 846,700 | 800,500 |
| Total asset turnover | 1.26 | 1.25 | 1.21 | 1.22 | 1.46 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,332,400K ÷ $1,059,300K
= 1.26
The total asset turnover ratio for Astec Industries Inc. has been relatively stable over the past five years, ranging from 1.20 to 1.46. This ratio indicates how efficiently the company is utilizing its assets to generate revenue.
A total asset turnover ratio of 1.26 in 2023 and 2022 suggests that for every dollar invested in assets, the company generated $1.26 in revenue. The consistent nature of this ratio can be viewed positively, indicating that Astec Industries has been able to maintain a steady level of asset utilization over these two years.
However, the slight decline in the total asset turnover ratio in 2021 and 2020 to 1.20 and 1.21, respectively, might indicate a decrease in efficiency in utilizing assets to generate revenue during those years. This trend should be further investigated to understand the underlying reasons for the decline.
The significant drop in the total asset turnover ratio to 1.46 in 2019 suggests a notable improvement in asset utilization efficiency, with the company generating more revenue per dollar of assets invested. This could be a result of strategic operational changes or improved business processes implemented by Astec Industries during that year.
In conclusion, while the total asset turnover ratio of Astec Industries Inc. has shown some fluctuations over the years, it is important for the company to consistently monitor and improve its asset utilization efficiency to drive overall financial performance.
Peer comparison
Dec 31, 2023