Allegheny Technologies Incorporated (ATI)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,050,200 | 3,594,600 | 2,646,300 | 2,858,800 | 4,079,500 |
| Total assets | US$ in thousands | 4,985,100 | 4,445,600 | 4,285,200 | 4,034,900 | 5,634,600 |
| Total asset turnover | 0.81 | 0.81 | 0.62 | 0.71 | 0.72 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,050,200K ÷ $4,985,100K
= 0.81
Total asset turnover is a key efficiency ratio that measures a company's ability to generate sales in relation to its total assets. In the case of ATI Inc, the total asset turnover has fluctuated over the past five years. The company's total asset turnover ratio was 0.84 in 2023, indicating that for every dollar of total assets, ATI Inc generated $0.84 in revenue. This ratio decreased slightly compared to 0.86 in 2022 but still remained relatively stable.
In 2021, the total asset turnover was 0.65, showing a decrease in efficiency compared to the previous year. However, there was an improvement in 2020 with a total asset turnover of 0.74, indicating that ATI Inc was able to generate more sales relative to its total assets. The ratio was also 0.73 in 2019, showing consistency in performance over the years.
Overall, ATI Inc's total asset turnover has shown some variability, with fluctuations in efficiency in utilizing its assets to generate revenue. It is essential for the company to maintain a healthy total asset turnover ratio to ensure optimal utilization of its assets and maximize profitability.