Campbell Soup Company Common Stock (CPB)
Total asset turnover
| Jul 28, 2024 | Jul 30, 2023 | Jul 31, 2022 | Aug 1, 2021 | Aug 2, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,636,000 | 9,357,000 | 8,562,000 | 8,476,000 | 8,691,000 |
| Total assets | US$ in thousands | 15,235,000 | 12,058,000 | 11,892,000 | 11,734,000 | 12,372,000 |
| Total asset turnover | 0.63 | 0.78 | 0.72 | 0.72 | 0.70 |
July 28, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $9,636,000K ÷ $15,235,000K
= 0.63
Total asset turnover is a key ratio that measures the efficiency of Campbell Soup Company Common Stock in generating sales revenue from its total assets. The trend in total asset turnover over the past five years shows some fluctuations. In July 2024, the total asset turnover ratio was 0.63, which indicates that Campbell Soup generated $0.63 in sales for every dollar of assets it owns. This represents a decrease from the previous year's ratio of 0.78 in July 2023, suggesting a decline in the company's efficiency in utilizing its assets to generate sales revenue.
Comparing the current ratio to the two preceding years, we see that in July 2022 and August 2021, the total asset turnover ratio remained steady at 0.72, indicating consistent performance in utilizing assets to generate sales. However, a slight decrease was observed from August 2020 when the ratio was 0.70.
Overall, the decreasing trend in total asset turnover suggests that Campbell Soup Company may be facing challenges in efficiently utilizing its assets to generate sales revenue. It would be advisable for the company to assess its asset management strategies and operational efficiency to improve its performance in converting assets into revenue.
Peer comparison
Jul 28, 2024