Graco Inc (GGG)
Total asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,195,606 | 2,184,007 | 2,189,979 | 2,178,882 | 2,143,521 | 2,128,095 | 2,069,147 | 2,027,764 | 1,987,608 | 1,918,329 | 1,870,949 | 1,730,677 | 1,650,115 | 1,592,067 | 1,553,306 | 1,614,742 | 1,646,045 | 1,640,191 | 1,655,572 | 1,651,814 |
| Total assets | US$ in thousands | 2,722,010 | 2,674,920 | 2,707,720 | 2,546,260 | 2,438,900 | 2,438,200 | 2,404,280 | 2,319,440 | 2,443,200 | 2,377,330 | 2,229,200 | 2,087,720 | 1,988,130 | 1,994,000 | 1,962,460 | 1,947,340 | 1,692,210 | 1,637,420 | 1,640,550 | 1,549,050 |
| Total asset turnover | 0.81 | 0.82 | 0.81 | 0.86 | 0.88 | 0.87 | 0.86 | 0.87 | 0.81 | 0.81 | 0.84 | 0.83 | 0.83 | 0.80 | 0.79 | 0.83 | 0.97 | 1.00 | 1.01 | 1.07 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $2,195,606K ÷ $2,722,010K
= 0.81
Graco Inc's total asset turnover ratio has displayed fluctuations over the past few quarters, ranging from 0.79 to 1.07. The ratio indicates how efficiently the company is utilizing its assets to generate revenue. A total asset turnover ratio of less than 1 suggests that the company is not generating enough revenue relative to its total assets, which could be a sign of inefficiency in asset utilization.
In the recent quarters, the total asset turnover ratio has been below 1, indicating that Graco Inc may not be efficiently utilizing its assets to generate revenue. The ratio peaked in Q4 2019 and Q1 2020 at 1.07, suggesting a higher level of efficiency in asset utilization during that period.
It is essential for Graco Inc to closely monitor and improve its total asset turnover ratio to ensure optimal utilization of its assets and improve overall financial performance. Efforts to enhance operational efficiency and increase revenue generation relative to total assets could help improve the company's financial health.
Peer comparison
Dec 31, 2023