Deluxe Corporation (DLX)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,121,760 | 2,192,260 | 2,238,000 | 2,022,200 | 1,790,800 |
| Total assets | US$ in thousands | 2,831,040 | 3,080,620 | 3,076,500 | 3,074,400 | 1,874,900 |
| Total asset turnover | 0.75 | 0.71 | 0.73 | 0.66 | 0.96 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,121,760K ÷ $2,831,040K
= 0.75
Deluxe Corporation's total asset turnover has experienced fluctuations over the past five years. The ratio declined from 0.96 in December 31, 2020, to 0.66 in December 31, 2021, indicating a decrease in the company's ability to generate sales relative to its total assets. However, there was a slight improvement in the ratio in the following years, reaching 0.73 in December 31, 2022, 0.71 in December 31, 2023, and 0.75 in December 31, 2024.
These changes suggest that Deluxe Corporation has been making adjustments to its asset utilization efficiency. The company may have implemented strategies to better utilize its assets to generate revenue, although overall improvement is needed to reach or exceed previous levels of total asset turnover. Further analysis of the company's operations and financial performance is recommended to gain a more comprehensive understanding of the factors influencing these fluctuations.