CDW Corp (CDW)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 21,149,400 | 23,513,000 | 20,669,900 | 18,312,600 | 17,873,000 |
| Total assets | US$ in thousands | 13,284,600 | 13,131,500 | 13,199,400 | 9,344,700 | 7,999,400 |
| Total asset turnover | 1.59 | 1.79 | 1.57 | 1.96 | 2.23 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $21,149,400K ÷ $13,284,600K
= 1.59
Total asset turnover measures the efficiency with which CDW Corp generates revenues from its total assets. A declining trend is observed in total asset turnover over the past five years, indicating a weakening ability to generate sales relative to the size of its asset base.
In 2019, CDW Corp achieved a total asset turnover of 2.25, signifying that it generated $2.25 in revenue for every dollar of total assets. However, this ratio has been decreasing annually, reaching 1.61 in 2023. This implies that for every dollar of assets held by the company in 2023, it generated $1.61 in sales.
The declining trend in total asset turnover suggests inefficiencies in asset utilization or a decline in sales generation relative to the size of the asset base. CDW Corp may need to evaluate its asset management strategies to improve operational efficiency and maximize revenue generation from its total assets in the future.
Peer comparison
Dec 31, 2023