Brinks Company (BCO)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,592,500 | 4,335,000 | 4,061,700 | 3,591,900 | 3,578,000 |
| Total assets | US$ in thousands | 6,601,800 | 6,366,000 | 5,566,700 | 5,135,600 | 3,763,800 |
| Total asset turnover | 0.70 | 0.68 | 0.73 | 0.70 | 0.95 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,592,500K ÷ $6,601,800K
= 0.70
The total asset turnover ratio for Brink`s Co. has fluctuated over the past five years, ranging from 0.71 to 0.98. The ratio measures the company's efficiency in generating sales revenue from its total assets. A higher total asset turnover indicates that the company is generating more revenue with fewer assets, which is generally considered favorable.
In 2023, Brink`s Co. had a total asset turnover of 0.74, showing a slight improvement compared to the previous year's ratio of 0.71. This suggests that the company was able to generate more revenue per dollar of assets in 2023. However, the ratio is still lower than the peak of 0.98 in 2019, indicating that there may be room for further improvement in asset utilization efficiency.
Overall, Brink`s Co. should continue to focus on optimizing the use of its assets to enhance its operational efficiency and profitability. Management should closely monitor the total asset turnover ratio and implement strategies to improve asset utilization in order to drive revenue growth and maximize shareholder value.
Peer comparison
Dec 31, 2023