Embecta Corp (EMBC)

Total asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021
Revenue (ttm)	US$ in thousands	1,116,800	1,115,200	1,110,600	1,115,600	1,108,100	1,123,300
Total assets	US$ in thousands	1,217,800	1,214,400	1,252,100	1,210,000	1,196,900	1,086,400	1,049,800	833,500	739,900
Total asset turnover		0.92	0.92	0.89	0.92	0.93	1.03

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,116,800K ÷ $1,217,800K
= 0.92

Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its total assets. It indicates how well a company is utilizing its assets to generate revenue. A higher total asset turnover ratio typically suggests that a company is efficiently using its assets to generate sales.

Looking at the data provided for Embecta Corp, we observe fluctuations in the total asset turnover ratio over the past few quarters. From December 31, 2021, to June 30, 2022, the ratio increased steadily from 0.93 to 1.03, indicating an improvement in the company's ability to generate sales relative to its total assets. However, this trend reversed in subsequent quarters, with the ratio decreasing to 0.92 by December 31, 2022.

Between December 31, 2022, and June 30, 2023, the total asset turnover ratio declined further to 0.89 before increasing slightly to 0.92 by December 31, 2023. This fluctuating trend may suggest varying levels of asset utilization efficiency within the company during these periods.

Overall, it is important for Embecta Corp to closely monitor and analyze its total asset turnover ratio to ensure efficient utilization of assets to drive sales growth and profitability. Identifying the factors contributing to fluctuations in this ratio can help management make informed decisions to improve operational efficiency and financial performance.