Cognex Corporation (CGNX)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	825,325	1,004,230	1,034,800	812,977	725,116
Total assets	US$ in thousands	2,017,810	1,958,140	2,003,660	1,800,700	1,885,940
Total asset turnover		0.41	0.51	0.52	0.45	0.38

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $825,325K ÷ $2,017,810K
= 0.41

The total asset turnover ratio measures a company's efficiency in generating sales revenue relative to its total assets. A higher ratio indicates that the company is utilizing its assets more effectively to generate revenue.

For Cognex Corp., we observe a fluctuating trend in total asset turnover over the past five years. The ratio declined from 0.38 in 2019 to 0.42 in 2023 with some variability in between. This suggests that Cognex Corp.'s ability to generate sales revenue relative to its total assets has been somewhat inconsistent.

The company's total asset turnover ratios indicate that Cognex Corp. has struggled to effectively utilize its assets to generate revenue when compared to its peers. It may need to focus on improving asset utilization to enhance its operational efficiency and profitability in the future.