Eastman Chemical Company (EMN)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	9,210,000	10,580,000	10,476,000	8,473,000	9,273,000
Total assets	US$ in thousands	14,633,000	14,667,000	15,519,000	16,083,000	16,008,000
Total asset turnover		0.63	0.72	0.68	0.53	0.58

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $9,210,000K ÷ $14,633,000K
= 0.63

The total asset turnover ratio measures how efficiently a company is utilizing its total assets to generate sales. A higher total asset turnover indicates that the company is generating more sales per dollar of assets, which is generally favorable.

The trend of Eastman Chemical Co's total asset turnover over the past five years shows some fluctuations. The ratio decreased from 0.58 in 2019 to 0.53 in 2020, which may indicate that the company was less efficient in utilizing its assets to generate sales in 2020. However, there was an improvement in 2021, with the ratio increasing to 0.68, indicating better asset utilization.

In 2022, the ratio further improved to 0.72, suggesting that the company was able to generate more sales relative to its total assets. However, in 2023, the total asset turnover decreased to 0.63, indicating a slight decrease in efficiency in utilizing assets to generate sales compared to the previous year.

Overall, while there have been fluctuations in Eastman Chemical Co's total asset turnover ratio, the company has shown improvement in efficiently utilizing its assets to generate sales in recent years. Further analysis of the company's operations and financial performance is recommended to understand the factors influencing this ratio.