GE HealthCare Technologies Inc. (GEHC)
Total asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 18,952,000 | 19,284,000 | |||
| Total assets | US$ in thousands | 32,454,000 | 32,382,000 | 32,311,000 | 32,637,000 | 27,539,000 |
| Total asset turnover | 0.58 | 0.60 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $18,952,000K ÷ $32,454,000K
= 0.58
Total asset turnover is a key financial ratio that measures a company's efficiency in generating revenue from its total assets. In the case of GE HealthCare Technologies Inc., the total asset turnover has shown a declining trend over the past year, indicating a decrease in the company's ability to generate sales from its assets.
As of December 31, 2022, the total asset turnover was 0.60, which means that for every dollar of assets the company had, it generated $0.60 of revenue. However, by December 31, 2023, this ratio had decreased to 0.58, indicating a slight decline in efficiency in utilizing its assets to generate sales.
A lower total asset turnover ratio can be a cause for concern as it may suggest that the company is not effectively utilizing its assets to generate revenue. It could be due to various factors such as inefficient asset management, underutilization of resources, or declining sales relative to its asset base.
Overall, the decreasing trend in GE HealthCare Technologies Inc.'s total asset turnover ratio suggests a potential inefficiency in the company's asset utilization, which warrants further investigation and strategic planning to improve operational performance and profitability.
Peer comparison
Dec 31, 2023