Axalta Coating Systems Ltd (AXTA)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,276,000 | 5,184,000 | 4,884,400 | 4,416,200 | 3,737,600 |
| Total assets | US$ in thousands | 7,249,000 | 7,272,000 | 7,059,200 | 7,217,200 | 7,157,200 |
| Total asset turnover | 0.73 | 0.71 | 0.69 | 0.61 | 0.52 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,276,000K ÷ $7,249,000K
= 0.73
The total asset turnover ratio measures the efficiency of a company in generating sales revenue from its total assets. In the case of Axalta Coating Systems Ltd, the total asset turnover has been steadily increasing over the past five years.
As of December 31, 2020, the total asset turnover was 0.52, indicating that for every dollar of total assets, the company generated $0.52 in sales. By December 31, 2024, the total asset turnover ratio had improved to 0.73, suggesting that the company has become more efficient in utilizing its assets to generate revenue.
This trend indicates that Axalta Coating Systems Ltd has been improving its asset utilization and generating more sales from its existing asset base over the years. It could signify better management of inventory, increased sales volume, or improved operational efficiency. Overall, a higher total asset turnover ratio is a positive indication of the company's operational performance and efficiency in utilizing its assets.
Peer comparison
Dec 31, 2024