Globus Medical (GMED)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,519,360 | 1,568,480 | 1,022,840 | 958,102 | 789,042 |
| Total assets | US$ in thousands | 5,251,750 | 5,086,080 | 2,076,130 | 1,957,260 | 1,679,480 |
| Total asset turnover | 0.48 | 0.31 | 0.49 | 0.49 | 0.47 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,519,360K ÷ $5,251,750K
= 0.48
Total asset turnover is a financial ratio that measures a company's ability to generate revenue from its total assets. Globus Medical's total asset turnover has shown fluctuations over the past five years. In December 31, 2020, the total asset turnover was 0.47, indicating that the company generated $0.47 in revenue for every $1 of total assets during that period.
There was a slight increase in the total asset turnover to 0.49 in both December 31, 2021, and December 31, 2022, suggesting that the company improved its efficiency in asset utilization to generate revenue. However, in December 31, 2023, there was a decrease in total asset turnover to 0.31, which may indicate a decline in the company's ability to generate revenue from its assets efficiently.
The total asset turnover ratio bounced back to 0.48 in December 31, 2024, showing some recovery in asset utilization efficiency. Overall, the trend in total asset turnover for Globus Medical has been fluctuating, and it would be essential for the company to focus on optimizing its asset utilization to enhance revenue generation in the future.
Peer comparison
Dec 31, 2024