Digi International Inc (DGII)

Total asset turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	444,849	388,225	308,632	279,271	254,203
Total assets	US$ in thousands	835,531	853,895	619,531	528,682	398,698
Total asset turnover		0.53	0.45	0.50	0.53	0.64

September 30, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $444,849K ÷ $835,531K
= 0.53

The total asset turnover ratio measures a company's ability to generate sales in relation to its total assets. A higher ratio indicates that the company is more efficient in utilizing its assets to generate revenue.

Looking at the trend in Digi International, Inc.'s total asset turnover over the past five years, it appears to have fluctuated. The ratio was 0.64 in 2019, indicating that the company generated $0.64 in sales for each dollar of assets. However, the ratio decreased to 0.53 in 2020 and again to 0.50 in 2021 before declining further to 0.45 in 2022. This may suggest that the company's ability to utilize its assets to generate sales has weakened over the years.

In 2023, the total asset turnover ratio improved slightly to 0.53. While this indicates a modest recovery, it remains below the 2019 level. It is important for stakeholders to monitor this ratio closely to assess whether the company can continue to improve its asset utilization and generate higher sales in relation to its total assets in the future.