Graco Inc (GGG)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,113,320 | 2,195,610 | 2,143,520 | 1,987,610 | 1,650,120 |
| Total assets | US$ in thousands | 3,139,210 | 2,722,010 | 2,438,900 | 2,443,200 | 1,988,130 |
| Total asset turnover | 0.67 | 0.81 | 0.88 | 0.81 | 0.83 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,113,320K ÷ $3,139,210K
= 0.67
The total asset turnover ratio measures a company's ability to generate revenue from its assets. A higher ratio indicates that the company is more efficient in using its assets to generate sales.
Analyzing the total asset turnover of Graco Inc over the past five years, we observe some fluctuations:
- In December 31, 2020, the total asset turnover was 0.83, suggesting that the company generated $0.83 in revenue for every $1 of assets.
- In December 31, 2021, the ratio slightly decreased to 0.81, indicating a minor decline in asset utilization for revenue generation.
- By December 31, 2022, the total asset turnover increased to 0.88, showing improved efficiency in utilizing assets to generate revenue.
- However, the ratio dropped back to 0.81 by December 31, 2023, indicating a decrease in asset turnover efficiency.
- The most significant decline was seen by December 31, 2024, where the total asset turnover fell to 0.67, suggesting a notable decrease in revenue generated per dollar of assets.
Overall, the total asset turnover of Graco Inc has shown some fluctuations over the years, indicating varying levels of efficiency in asset utilization for revenue generation. Further analysis would be needed to understand the underlying reasons for these fluctuations and identify potential areas for improvement in asset management.
Peer comparison
Dec 31, 2024