Cal-Maine Foods Inc (CALM)
Total asset turnover
| Jun 1, 2024 | Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,325,870 | 3,145,760 | 1,781,860 | 1,345,790 | 1,351,610 |
| Total assets | US$ in thousands | 2,184,760 | 1,954,520 | 1,427,490 | 1,229,170 | 1,206,690 |
| Total asset turnover | 1.06 | 1.61 | 1.25 | 1.09 | 1.12 |
June 1, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,325,870K ÷ $2,184,760K
= 1.06
The total asset turnover ratio for Cal-Maine Foods Inc has been fluctuating over the past five years, with values ranging from 1.06 to 1.61. This ratio indicates how efficiently the company is generating sales from its total assets. A higher total asset turnover ratio suggests that the company is effectively utilizing its assets to generate sales revenue.
In the most recent year, the total asset turnover ratio decreased to 1.06, indicating a decrease in the company's efficiency in generating sales from its assets compared to the previous year. This may be a point of concern as it suggests a potential decrease in asset utilization or sales generation efficiency.
On the other hand, in the prior year, the total asset turnover ratio reached 1.61, reflecting a significant improvement in asset utilization and sales generation efficiency compared to previous years. This peak could indicate a more efficient use of assets or a higher level of sales generated relative to the assets employed.
Overall, the trend in Cal-Maine Foods Inc's total asset turnover ratio shows variability, with fluctuations from year to year. Further analysis and investigation into the company's asset management and sales generation strategies may be warranted to determine the underlying factors driving these fluctuations.