Embecta Corp (EMBC)

Total asset turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022
Revenue	US$ in thousands	1,118,700	1,112,000	1,126,300
Total assets	US$ in thousands	1,285,300	1,214,400	1,086,400
Total asset turnover		0.87	0.92	1.04

September 30, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,118,700K ÷ $1,285,300K
= 0.87

The total asset turnover ratio measures how efficiently a company utilizes its assets to generate revenue. A higher total asset turnover ratio indicates that the company is generating more revenue per dollar of assets.

In the case of Embecta Corp, the total asset turnover has been showing a declining trend over the past three years. In September 2022, the total asset turnover was at its highest point at 1.04, suggesting that Embecta Corp was generating $1.04 in revenue for every $1 of assets during that period. However, by September 2023, the total asset turnover decreased to 0.92, indicating slightly less effective asset utilization.

As of September 2024, the total asset turnover ratio further decreased to 0.87, signaling a continued decline in the efficiency of generating revenue from the company's assets. This trend may suggest potential concerns regarding the company's ability to effectively utilize its assets to generate revenue.

It is important for investors and stakeholders to further explore the reasons behind the decreasing trend in total asset turnover to assess the overall financial health and operational efficiency of Embecta Corp.