Graham Holdings Co (GHC)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,394,680	3,881,520	3,193,800	3,072,330	2,932,100
Total assets	US$ in thousands	7,187,730	6,553,380	7,425,520	6,444,120	5,931,240
Total asset turnover		0.61	0.59	0.43	0.48	0.49

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $4,394,680K ÷ $7,187,730K
= 0.61

Total asset turnover measures how efficiently a company utilizes its assets to generate sales. A higher ratio indicates better asset utilization. Graham Holdings Co.'s total asset turnover has shown some fluctuations over the past five years.

In 2023, the total asset turnover was 0.61, slightly higher than the previous year's 0.60. This suggests that the company generated $0.61 in sales for every dollar of assets in 2023. The increase in the ratio indicates an improvement in asset efficiency compared to the prior year.

Looking back further, in 2021, the total asset turnover was relatively low at 0.43, indicating that the company was less efficient in generating sales from its assets. However, there was a slight improvement in 2022 and a more significant increase in 2023.

Comparing the 2023 ratio to 2019, where the total asset turnover was 0.49, there has been a notable improvement in asset efficiency over the five-year period. This indicates that Graham Holdings Co. has been able to generate more sales from its assets in the most recent year relative to previous years.

Overall, the trend in total asset turnover for Graham Holdings Co. is positive, showing an increasing efficiency in utilizing its assets to drive sales. This could be a result of improved operational efficiency or better management of assets to generate revenue.