Calavo Growers Inc (CVGW)
Total asset turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 967,829 | 1,188,450 | 1,063,150 | 1,022,360 | 1,197,400 |
| Total assets | US$ in thousands | 386,854 | 385,746 | 445,402 | 429,624 | 390,360 |
| Total asset turnover | 2.50 | 3.08 | 2.39 | 2.38 | 3.07 |
October 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $967,829K ÷ $386,854K
= 2.50
The total asset turnover of Calavo Growers, Inc has fluctuated over the past five years, ranging from 2.37 to 3.09. This ratio measures the efficiency with which the company generates sales revenue relative to its total assets. A higher total asset turnover indicates that the company is using its assets more efficiently to generate sales.
The decrease in total asset turnover from 3.09 in 2022 to 2.51 in 2023 may suggest that the company's sales generated per dollar of assets has declined. This could be due to an increase in the company's total assets outpacing the growth in sales. Conversely, the increase in total asset turnover from 2.37 in 2021 to 3.09 in 2022 indicates a significant improvement in asset utilization efficiency.
Overall, the fluctuation in total asset turnover implies varying degrees of efficiency in utilizing the company's assets to generate sales revenue over the years. Further analysis of the company's operational and financial performance is necessary to fully understand the factors driving these fluctuations.