Ethan Allen Interiors Inc (ETD)
Total asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 646,145 | 791,139 | 817,618 | 684,831 | 589,837 |
| Total assets | US$ in thousands | 744,917 | 745,453 | 719,895 | 683,245 | 622,789 |
| Total asset turnover | 0.87 | 1.06 | 1.14 | 1.00 | 0.95 |
June 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $646,145K ÷ $744,917K
= 0.87
Total asset turnover measures the efficiency with which a company utilizes its assets to generate revenue. In the case of Ethan Allen Interiors Inc, the total asset turnover ratio has shown some fluctuations over the past five years.
In Jun 2020, the total asset turnover was 0.95, indicating that the company generated $0.95 in revenue for every $1 of assets. This ratio improved in the following years, reaching a peak of 1.14 in Jun 2022, suggesting a more efficient utilization of assets to generate revenue.
However, in the most recent period of Jun 2024, the total asset turnover decreased to 0.87, indicating a decline in the efficiency of asset utilization compared to the previous year. This decline may raise concerns about the company's ability to generate sufficient revenue from its asset base.
Overall, although there have been fluctuations in the total asset turnover ratio, it is essential for Ethan Allen Interiors Inc to focus on efficiently utilizing its assets to drive revenue growth and enhance overall financial performance.
Peer comparison
Jun 30, 2024