PC Connection Inc (CNXN)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,850,070 | 3,124,980 | 2,892,630 | 2,590,160 | 2,819,820 |
| Total assets | US$ in thousands | 1,188,380 | 1,099,830 | 1,083,380 | 1,015,370 | 937,335 |
| Total asset turnover | 2.40 | 2.84 | 2.67 | 2.55 | 3.01 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,850,070K ÷ $1,188,380K
= 2.40
PC Connection Inc's total asset turnover ratio has fluctuated over the past five years. The ratio peaked in 2019 at 3.01 and has since seen some fluctuations but generally remained above 2. This indicates that, on average, the company generates $2.40 - $3.01 in revenue for every dollar of assets it owns.
A higher total asset turnover ratio suggests that the company is more efficient in utilizing its assets to generate sales revenue. The decreasing trend in 2020 and 2021 suggests a potential decrease in efficiency in asset utilization during those periods. However, the ratio rebounded in 2022 and remained relatively stable in 2023 at around 2.40 - 2.84.
Overall, the company's total asset turnover indicates a moderate efficiency in asset utilization to generate revenue, with some variations seen over the years. It would be beneficial for the company to closely monitor and potentially improve this ratio to enhance efficiency in utilizing its assets.
Peer comparison
Dec 31, 2023