Greif Bros Corporation (GEF)
Total asset turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,270,000 | 6,333,800 | 5,654,500 | 4,538,400 | 4,583,900 |
| Total assets | US$ in thousands | 5,960,800 | 5,469,900 | 5,815,800 | 5,510,900 | 5,426,700 |
| Total asset turnover | 0.88 | 1.16 | 0.97 | 0.82 | 0.84 |
October 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,270,000K ÷ $5,960,800K
= 0.88
The total asset turnover ratio measures the efficiency with which a company utilizes its total assets to generate revenue. A higher ratio indicates better asset utilization and efficiency. Let's analyze Greif Inc's total asset turnover based on the provided data.
In 2023, the total asset turnover ratio was 0.88, a decrease from the previous year's ratio of 1.16. This decrease could indicate a lower level of efficiency in utilizing its total assets to generate sales. It is important to further investigate the factors contributing to this decline in asset turnover.
In 2022, the total asset turnover ratio was 1.16, signaling a higher level of asset efficiency compared to the previous year. This improvement may suggest that Greif Inc effectively utilized its total assets to generate sales, potentially through better management of inventory, receivables, and other assets.
In 2021, the total asset turnover ratio was 0.96, indicating a slight decrease from the previous year. This decrease might imply that the company's sales growth did not keep up with the growth in total assets, leading to a lower efficiency in asset utilization.
In 2020, the total asset turnover ratio was 0.82, showing a decline from the previous year. This decrease suggests that Greif Inc was less effective in generating sales from its total asset base, potentially indicating inefficiencies in asset management or a decrease in sales relative to total assets.
In 2019, the total asset turnover ratio was 0.85, reflecting a relatively consistent level of asset efficiency compared to the previous year. This stability may indicate that Greif Inc maintained a consistent level of asset utilization to generate sales.
Overall, the trend in Greif Inc's total asset turnover suggests some variability in the company's efficiency in utilizing its total assets to generate revenue. It is important for stakeholders to assess the underlying reasons for these fluctuations and consider potential strategies to improve asset efficiency in the future.