Edwards Lifesciences Corp (EW)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	5,439,500	6,004,800	5,382,400	5,232,500	4,386,300
Total assets	US$ in thousands	13,055,300	9,363,200	8,292,500	8,502,600	7,237,100
Total asset turnover		0.42	0.64	0.65	0.62	0.61

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $5,439,500K ÷ $13,055,300K
= 0.42

Total asset turnover is a key financial ratio that measures a company's ability to generate sales revenue from its assets. Edwards Lifesciences Corp's total asset turnover has shown a mixed trend over the past five years.

Starting at 0.61 in December 31, 2020, the total asset turnover improved slightly to 0.62 by December 31, 2021. This slight increase suggests that the company was able to generate slightly more sales revenue from its assets in 2021 compared to the previous year.

Subsequently, there was a more noticeable improvement in total asset turnover to 0.65 by December 31, 2022. This increase indicates that the company became more efficient in utilizing its assets to generate sales revenue.

However, by December 31, 2023, the total asset turnover slightly decreased to 0.64, indicating a small decline in the company's ability to generate sales from its assets compared to the previous year.

The most significant change occurred by December 31, 2024, where the total asset turnover dropped to 0.42. This sharp decline suggests a significant decrease in the company's efficiency in generating sales from its assets.

Overall, while there were periods of improvement in total asset turnover for Edwards Lifesciences Corp, the significant decrease in 2024 raises concerns about the company's asset utilization efficiency and its ability to generate sales revenue going forward. Further analysis is needed to understand the factors contributing to these fluctuations and to assess the company's overall financial performance.