Graham Holdings Co (GHC)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,790,900 | 4,414,880 | 3,924,490 | 3,185,970 | 2,889,120 |
| Total assets | US$ in thousands | 7,677,200 | 7,187,730 | 6,582,220 | 7,425,520 | 6,444,120 |
| Total asset turnover | 0.62 | 0.61 | 0.60 | 0.43 | 0.45 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,790,900K ÷ $7,677,200K
= 0.62
Total asset turnover measures a company's ability to generate sales revenue relative to its total assets. For Graham Holdings Co, the total asset turnover has shown fluctuation over the past five years. In 2020, the total asset turnover was 0.45, indicating that the company generated $0.45 in sales for every dollar of assets.
However, the ratio declined slightly to 0.43 in 2021 before experiencing a significant increase to 0.60 in 2022. This suggests that the company improved its efficiency in utilizing its assets to generate sales revenue. The trend continued in the following years, with total asset turnover reaching 0.61 in 2023 and 0.62 in 2024.
Overall, the increasing trend in total asset turnover indicates that Graham Holdings Co has been effectively utilizing its assets to drive sales growth, which may signify improved operational efficiency and better management of the company's resources.
Peer comparison
Dec 31, 2024