Edwards Lifesciences Corp (EW)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,997,700 | 5,362,000 | 5,219,100 | 4,382,800 | 4,333,200 |
| Total assets | US$ in thousands | 9,363,200 | 8,292,500 | 8,502,600 | 7,237,100 | 6,488,100 |
| Total asset turnover | 0.64 | 0.65 | 0.61 | 0.61 | 0.67 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,997,700K ÷ $9,363,200K
= 0.64
The total asset turnover ratio for Edwards Lifesciences Corp has fluctuated over the past five years, ranging from 0.61 in 2020 to 0.67 in 2019. This ratio indicates how efficiently the company is generating revenue from its assets. A lower ratio may imply that the company is not effectively utilizing its assets to generate sales, while a higher ratio suggests better asset utilization.
In 2021 and 2023, the total asset turnover ratios were relatively stable at 0.62 and 0.64, respectively. This indicates that the company was able to generate $0.64 and $0.62 of revenue for every dollar of assets held in those years, reflecting a consistent level of asset efficiency.
However, the slight decrease in the ratio from 0.65 in 2022 to 0.64 in 2023 could suggest a minor decline in asset efficiency during that period. It is essential for the company to monitor and improve this ratio over time to ensure optimal utilization of its assets in generating revenue.
Peer comparison
Dec 31, 2023