Graco Inc (GGG)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,195,610 | 2,143,520 | 1,987,610 | 1,650,120 | 1,646,040 |
| Total assets | US$ in thousands | 2,722,010 | 2,438,900 | 2,443,200 | 1,988,130 | 1,692,210 |
| Total asset turnover | 0.81 | 0.88 | 0.81 | 0.83 | 0.97 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,195,610K ÷ $2,722,010K
= 0.81
Graco Inc's total asset turnover ratio has shown some fluctuations over the past five years. The ratio measures how efficiently the company is utilizing its total assets to generate revenue.
In 2019, Graco had a total asset turnover of 0.97, which indicates that the company generated $0.97 in sales for every dollar of assets it had. This suggests a high level of asset efficiency in that year. However, starting from 2020, the total asset turnover ratio has been trending downwards.
By 2023, the total asset turnover ratio had decreased to 0.81. This decline could indicate that Graco is becoming less efficient in utilizing its assets to generate revenue. It is important for the company to analyze the underlying reasons for this decrease and take appropriate actions to improve asset efficiency.
Overall, Graco's total asset turnover has been fluctuating in recent years, and it is important for the company to focus on improving asset efficiency to drive higher revenue generation from its total asset base.
Peer comparison
Dec 31, 2023