Avient Corp (AVNT)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,025,600 | 3,817,600 | 4,743,500 | 3,167,500 | 2,803,200 |
| Total assets | US$ in thousands | 5,968,500 | 6,085,000 | 4,997,200 | 4,870,500 | 3,273,300 |
| Total asset turnover | 0.51 | 0.63 | 0.95 | 0.65 | 0.86 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,025,600K ÷ $5,968,500K
= 0.51
The total asset turnover ratio for Avient Corp has exhibited fluctuations over the past five years. In 2023, the company's total asset turnover decreased to 0.53 from 0.56 in 2022. This decline indicates that Avient Corp generated $0.53 in revenue for every $1 of assets it possessed in 2023.
Comparing this to previous years, the total asset turnover was significantly higher in 2021 at 0.96 but dropped in 2022 and 2023. The peak ratio in 2021 suggests that the company was able to generate $0.96 in revenue for each dollar of assets, signifying efficient asset utilization.
However, the decrease in total asset turnover in 2022 and 2023 may indicate a potential decline in operational efficiency and effectiveness in utilizing its assets to generate revenue. Further analysis and investigation into the company's operational activities and management of assets may be warranted to improve the total asset turnover ratio in the future.
Peer comparison
Dec 31, 2023