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.
Peer comparison
Dec 31, 2023