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