Gen Digital Inc. (GEN)
Total asset turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,812,000 | 3,338,000 | 2,796,000 | 2,551,000 | 2,490,000 |
| Total assets | US$ in thousands | 15,772,000 | 15,947,000 | 6,943,000 | 6,361,000 | 7,735,000 |
| Total asset turnover | 0.24 | 0.21 | 0.40 | 0.40 | 0.32 |
March 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,812,000K ÷ $15,772,000K
= 0.24
The total asset turnover ratio measures the efficiency with which a company generates sales revenue in relation to its total assets. A higher ratio indicates that the company is using its assets more efficiently to generate sales.
Looking at Gen Digital Inc.'s total asset turnover over the past five years, we can see fluctuations in the ratio. In the most recent fiscal year ending March 31, 2024, the total asset turnover stood at 0.24. This signifies that for every dollar of total assets, the company generated $0.24 in sales revenue.
Comparing this to the previous year, there was a slight improvement as the ratio increased from 0.21 in 2023 to 0.24 in 2024. However, it is important to note that the ratio is relatively low, indicating that Gen Digital Inc. may not be efficiently utilizing its assets to drive sales.
Furthermore, when looking at the trend over the past five years, we see that the total asset turnover was highest in 2022 and 2021 at 0.40, indicating better asset utilization during those periods. However, there was a decline in 2020 to 0.32 before the ratio dropped further in 2024.
Overall, Gen Digital Inc. should focus on improving its total asset turnover in order to enhance its efficiency in generating sales revenue relative to its total asset base.
Peer comparison
Mar 31, 2024