CF Industries Holdings Inc (CF)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,936,000 | 6,631,000 | 11,186,000 | 6,538,000 | 4,124,000 |
| Total assets | US$ in thousands | 13,466,000 | 14,376,000 | 13,313,000 | 12,375,000 | 12,023,000 |
| Total asset turnover | 0.44 | 0.46 | 0.84 | 0.53 | 0.34 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,936,000K ÷ $13,466,000K
= 0.44
Total asset turnover is a crucial financial ratio that indicates a company's efficiency in generating sales revenue relative to its total assets. CF Industries Holdings Inc's total asset turnover has shown varying trends over the years.
In 2020, the total asset turnover was 0.34, indicating that the company generated $0.34 in sales for every $1 of total assets. This could suggest inefficiency in asset utilization.
By 2021, the total asset turnover improved significantly to 0.53, reflecting a more effective use of assets to generate sales revenue. This improvement signifies that the company experienced better efficiency in utilizing its assets to drive sales.
The ratio continued to increase in 2022 to 0.84, reaching its peak during this period. A higher total asset turnover ratio implies that the company is highly efficient in generating sales from its total assets.
However, in 2023, the total asset turnover decreased to 0.46, indicating a potential decline in asset utilization efficiency compared to the previous year. This decrease may raise concerns about the company's ability to generate sales revenue relative to its total asset base.
In 2024, the total asset turnover remained relatively stable at 0.44, suggesting a continued moderate efficiency in converting assets into sales. The stability of this ratio indicates that the company maintained a consistent level of asset utilization efficiency compared to the prior year.
Overall, the fluctuating trends in CF Industries Holdings Inc's total asset turnover reveal varying levels of efficiency in utilizing assets to generate sales revenue over the years, which may require further analysis to understand the factors influencing these changes.
Peer comparison
Dec 31, 2024