Dow Inc (DOW)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	44,622,000	56,902,000	54,968,000	38,542,000	42,951,000
Total assets	US$ in thousands	57,967,000	60,603,000	62,990,000	61,470,000	60,524,000
Total asset turnover		0.77	0.94	0.87	0.63	0.71

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $44,622,000K ÷ $57,967,000K
= 0.77

Total asset turnover is a key financial ratio that measures a company's ability to generate revenue from its assets. It is calculated by dividing the total revenue by the average total assets. In the case of Dow Inc, the total asset turnover has fluctuated over the past five years, indicating changes in the company's efficiency in utilizing its assets to generate sales.

In 2023, the total asset turnover ratio was 0.77, which suggests that for every dollar of average total assets, the company generated $0.77 in sales. This represents a decrease from the previous year's ratio of 0.94, indicating a decline in the company's efficiency in utilizing its assets to generate revenue.

The total asset turnover ratio was highest in 2022 at 0.94, indicating improved efficiency in asset utilization compared to the previous years. In 2021, the ratio was 0.87, showing a relatively stable performance in asset turnover. However, in 2020 and 2019, the ratios were 0.63 and 0.71, respectively, indicating lower efficiency in utilizing assets to generate sales.

Overall, the fluctuation in Dow Inc's total asset turnover ratio points to varying levels of efficiency in utilizing its assets to generate revenue over the past five years, which could be influenced by changes in business operations, sales strategies, and asset management. These fluctuations should be further investigated to understand the underlying factors driving the changes in asset turnover and to assess the company's overall efficiency in asset utilization.