ESCO Technologies Inc (ESE)
Total asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,011,550 | 947,264 | 852,649 | 715,135 | 728,985 |
| Total assets | US$ in thousands | 1,838,620 | 1,683,210 | 1,654,460 | 1,577,340 | 1,370,190 |
| Total asset turnover | 0.55 | 0.56 | 0.52 | 0.45 | 0.53 |
September 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,011,550K ÷ $1,838,620K
= 0.55
ESCO Technologies Inc's total asset turnover ratio has shown some fluctuation over the past five years. The ratio was 0.53 in 2020, decreased to 0.45 in 2021, increased to 0.52 in 2022, and further increased to 0.56 in 2023 before declining again to 0.55 in 2024.
A total asset turnover ratio of less than 1 indicates that the company is not generating enough revenue relative to its total assets. ESCO's ratios over the past five years suggest that the company is not efficiently utilizing its assets to generate sales. The decrease from 2023 to 2024 may indicate a slight decrease in efficiency in generating revenue.
Overall, ESCO Technologies Inc may need to focus on improving its asset utilization to increase its total asset turnover ratio and generate more sales from its existing asset base.
Peer comparison
Sep 30, 2024