Avis Budget Group Inc (CAR)

Total asset turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 12,008,000 11,994,000 9,313,000 5,402,000 9,172,000
Total assets US$ in thousands 32,569,000 25,927,000 22,600,000 17,538,000 23,126,000
Total asset turnover 0.37 0.46 0.41 0.31 0.40

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $12,008,000K ÷ $32,569,000K
= 0.37

Avis Budget Group Inc's total asset turnover has fluctuated over the past five years, ranging from 0.31 in 2020 to 0.46 in 2022. The total asset turnover ratio measures the company's efficiency in generating sales revenue from its total assets. A lower ratio indicates that the company is less efficient in utilizing its assets to generate sales, while a higher ratio suggests better efficiency.

In 2023, the total asset turnover ratio decreased to 0.37 from the previous year, indicating that Avis Budget Group Inc generated $0.37 in sales for every $1 of total assets. This decrease could signify either a decline in sales relative to the total assets held by the company or an increase in the average total assets. It would be important to further investigate the reasons behind the change in asset turnover to assess the company's operational performance and asset utilization efficiency.


Peer comparison

Dec 31, 2023

Company name
Symbol
Total asset turnover
Avis Budget Group Inc
CAR
0.37
Hertz Global Holdings Inc
HTZ
0.38
Ryder System Inc
R
0.75