Grid Dynamics Holdings Inc (GDYN)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	350,571	312,910	310,482	211,280	111,283
Total assets	US$ in thousands	592,192	435,165	411,146	256,719	167,135
Total asset turnover		0.59	0.72	0.76	0.82	0.67

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $350,571K ÷ $592,192K
= 0.59

Grid Dynamics Holdings Inc's total asset turnover has shown fluctuations over the past five years. The ratio started at 0.67 in December 31, 2020, increased to 0.82 by December 31, 2021, but then decreased to 0.76 by December 31, 2022. In the following year, by December 31, 2023, the total asset turnover decreased further to 0.72. By the end of the most recent year, December 31, 2024, the total asset turnover experienced a significant decline to 0.59.

The decreasing trend in total asset turnover indicates that the company is generating less revenue per dollar of assets invested in the business over time. This could signal inefficiencies in asset utilization or declining sales relative to the size of the asset base. Further analysis is needed to understand the underlying reasons for the declining total asset turnover and to identify potential areas for improvement in operational efficiency or revenue generation.