PC Connection Inc (CNXN)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,802,060 | 2,850,070 | 3,124,980 | 2,892,630 | 2,590,160 |
| Total assets | US$ in thousands | 1,299,350 | 1,188,380 | 1,099,830 | 1,083,380 | 1,015,370 |
| Total asset turnover | 2.16 | 2.40 | 2.84 | 2.67 | 2.55 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,802,060K ÷ $1,299,350K
= 2.16
Based on the data provided for PC Connection Inc's total asset turnover from 2020 to 2024, we can observe a fluctuating trend in this ratio over the years. In 2020, the total asset turnover was 2.55, which indicates that the company generated $2.55 in revenue for every $1 of total assets.
The ratio increased to 2.67 in 2021, suggesting improved efficiency in asset utilization, as the company generated a higher level of revenue relative to its total assets. The trend continued to rise in 2022, reaching 2.84, indicating further improvement in asset turnover and potentially more effective management of assets to generate revenue.
However, in 2023, the total asset turnover ratio decreased to 2.40, which may indicate a decrease in the company's ability to efficiently generate revenue from its total assets. This decline could be attributed to changes in the company's operations or asset base during that year.
Furthermore, in 2024, the total asset turnover decreased further to 2.16, signaling a continued decline in asset efficiency and revenue generation compared to the previous year. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's ability to utilize its assets effectively to generate revenue and maintain financial performance.
Peer comparison
Dec 31, 2024