Boise Cascad Llc (BCC)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,813,040 | 8,360,740 | 7,901,580 | 5,435,140 | 4,643,400 |
| Total assets | US$ in thousands | 3,458,650 | 3,240,510 | 2,572,640 | 1,965,720 | 1,693,350 |
| Total asset turnover | 1.97 | 2.58 | 3.07 | 2.76 | 2.74 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,813,040K ÷ $3,458,650K
= 1.97
The total asset turnover ratio for Boise Cascade Co has exhibited some fluctuations over the past five years. In 2023, the total asset turnover ratio stood at 1.98, indicating that the company generated $1.98 in revenue for every $1 of total assets. This represents a decrease from the previous year, suggesting that the company may have experienced challenges in efficiently utilizing its assets to generate revenue.
Comparing the current ratio to the ratios of the previous years, it is evident that there has been a downward trend since the peak in 2021 at 3.08. This decline may signal operational inefficiencies or changes in the business environment impacting the company's ability to generate revenue from its assets effectively.
A total asset turnover ratio below 1 would typically indicate that the company is not effectively utilizing its assets to generate sales. In contrast, a ratio above 1 implies that the company is efficient in converting its assets into revenue.
Overall, the declining trend in the total asset turnover ratio for Boise Cascade Co warrants further investigation into the company's operational performance and asset management strategies to identify potential areas for improvement and sustainable growth.
Peer comparison
Dec 31, 2023