Globus Medical (GMED)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,568,480 | 1,022,840 | 958,102 | 789,042 | 785,368 |
| Total assets | US$ in thousands | 5,086,080 | 2,076,130 | 1,957,260 | 1,679,480 | 1,532,080 |
| Total asset turnover | 0.31 | 0.49 | 0.49 | 0.47 | 0.51 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,568,480K ÷ $5,086,080K
= 0.31
Total asset turnover is a financial ratio that measures a company's efficiency in generating revenue from its assets. It indicates how well a company is utilizing its assets to generate sales.
For Globus Medical Inc, the total asset turnover has been fluctuating over the past five years. In 2023, the total asset turnover was 0.31, a decrease compared to the previous year's ratio of 0.49. This suggests that the company generated $0.31 in revenue for every $1 of assets it held in 2023.
The decreasing trend in total asset turnover from 2022 to 2023 may indicate inefficiencies in utilizing the company's assets to generate revenue. Further analysis is needed to understand the reasons behind this decline and whether it is a cause for concern in terms of the company's operational performance and financial health.
Peer comparison
Dec 31, 2023