Commercial Metals Company (CMC)
Total asset turnover
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,759,230 | 9,122,140 | 6,669,820 | 5,420,640 | 5,761,080 |
| Total assets | US$ in thousands | 6,639,090 | 6,237,030 | 4,638,670 | 4,081,730 | 3,758,770 |
| Total asset turnover | 1.32 | 1.46 | 1.44 | 1.33 | 1.53 |
August 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $8,759,230K ÷ $6,639,090K
= 1.32
The total asset turnover of Commercial Metals Co. has exhibited a gradual decline over the past five years, falling from 1.55 in 2019 to 1.33 in 2023. This indicates that the company's efficiency in generating sales from its total assets has decreased over the period. A lower total asset turnover may suggest that the company's assets are not being utilized as effectively to generate sales, which could be due to issues such as excess inventory, underutilized capacity, or inefficient asset management. It is important for the company to closely monitor and address the factors contributing to this decline in total asset turnover to improve its operational efficiency and overall financial performance.
Peer comparison
Aug 31, 2023