DT Midstream Inc (DTM)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 922,000 | 920,000 | 840,000 |
| Total assets | US$ in thousands | 8,982,000 | 8,833,000 | 8,166,000 |
| Total asset turnover | 0.10 | 0.10 | 0.10 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $922,000K ÷ $8,982,000K
= 0.10
Total asset turnover measures how efficiently a company generates sales from its investments in assets.
In the case of DT Midstream Inc, the total asset turnover has been consistently around 0.10 for the past three years, with a slight increase from 0.09 in 2020 to 0.10 in subsequent years. This suggests that the company is able to generate $0.10 in sales for every $1 of assets it holds.
A total asset turnover of 0.10 indicates that DT Midstream Inc may not be effectively utilizing its assets to generate revenue compared to some other companies in the industry. It may imply that the company could improve its sales generation efficiency by either increasing revenue or optimizing the utilization of its assets.
Overall, while the total asset turnover ratio for DT Midstream Inc has remained stable over the years, further analysis into the company's operations and asset management strategies could provide insights into potential areas for improvement in driving higher sales from its asset base.
Peer comparison
Dec 31, 2023