Commercial Metals Company (CMC)

Total asset turnover

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Revenue (ttm)	US$ in thousands	8,364,790	8,536,410	8,759,370	9,226,700	9,389,600	9,361,170	9,117,680	8,467,780	7,801,570	7,252,900	6,656,150	6,046,880	5,534,950	5,430,800	5,429,840	5,563,710	5,833,520	5,888,080	5,776,260	5,541,700
Total assets	US$ in thousands	6,662,260	6,695,170	6,639,090	6,520,860	6,639,090	6,639,090	6,237,030	6,103,700	5,504,220	4,725,260	4,638,670	4,391,080	4,064,040	4,016,670	4,081,730	3,954,890	3,907,940	3,808,350	3,758,770	3,767,010
Total asset turnover		1.26	1.28	1.32	1.41	1.41	1.41	1.46	1.39	1.42	1.53	1.43	1.38	1.36	1.35	1.33	1.41	1.49	1.55	1.54	1.47

February 29, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $8,364,790K ÷ $6,662,260K
= 1.26

Commercial Metals Company's total asset turnover ratio has fluctuated over the past several periods, ranging from a low of 1.26 to a high of 1.55. The ratio measures how efficiently the company is utilizing its assets to generate revenue. A higher total asset turnover generally indicates better efficiency in asset utilization.

Looking at the trend, there seems to be some variation in the company's ability to generate sales relative to its total assets. For example, there was a noticeable decrease in total asset turnover from May 2021 (1.53) to May 2022 (1.39), followed by a slight increase to 1.46 in August 2022. The ratio then experienced some fluctuation before trending upwards to 1.55 by May 2019.

Overall, Commercial Metals Company's total asset turnover has shown some variability, and it would be important to assess the underlying reasons for these fluctuations to determine if there are areas where the company could improve its asset utilization efficiency.