Forward Air Corporation (FWRD)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,337,060	1,959,900	1,652,200	1,269,570	1,215,190
Total assets	US$ in thousands	2,979,530	1,208,080	1,117,820	1,047,390	990,878
Total asset turnover		0.45	1.62	1.48	1.21	1.23

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,337,060K ÷ $2,979,530K
= 0.45

The total asset turnover ratio for Forward Air Corporation has exhibited some fluctuation over the past five years. In 2023, the total asset turnover ratio decreased to 0.45 from higher levels seen in the prior two years. This implies that for every dollar of total assets the company held, it generated $0.45 in revenue in 2023.

The peak total asset turnover of 1.62 in 2022 indicates that the company was able to generate $1.62 in revenue for every dollar of total assets it possessed, showcasing strong efficiency in asset utilization. The ratios for 2021, 2020, and 2019 were relatively close, ranging between 1.21 and 1.23.

Overall, the declining trend in total asset turnover from 2022 to 2023 may suggest potential challenges in efficiently utilizing assets to generate revenue. Further analysis is recommended to identify the underlying factors contributing to this decline and to assess the company's asset management strategies.