FormFactor Inc (FORM)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 763,599 | 663,102 | 747,937 | 769,674 | 693,616 |
| Total assets | US$ in thousands | 1,146,220 | 1,106,790 | 1,008,230 | 1,020,520 | 963,217 |
| Total asset turnover | 0.67 | 0.60 | 0.74 | 0.75 | 0.72 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $763,599K ÷ $1,146,220K
= 0.67
FormFactor Inc's total asset turnover has shown some fluctuation over the past five years, ranging from 0.60 to 0.75. The company's ability to generate sales relative to its total assets is indicated by the total asset turnover ratio, reflecting the efficiency of asset utilization in generating revenue. Although the ratio increased from 0.72 in 2020 to 0.75 in 2021, it slightly decreased to 0.74 in 2022, followed by a more noticeable drop to 0.60 in 2023. However, there was a partial recovery in 2024, with the ratio improving to 0.67.
A total asset turnover ratio below 1 may indicate that the company is not effectively utilizing its assets to generate revenues. The fluctuations observed in FormFactor Inc's total asset turnover ratio suggest potential challenges in efficiently leveraging its assets to drive sales. Further analysis of the company's operations, asset management strategies, and industry dynamics may help in understanding the factors influencing these fluctuations and in identifying opportunities for improvement to enhance overall efficiency and profitability.
Peer comparison
Dec 31, 2024