Harmonic Inc (HLIT)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 678,722 | 607,907 | 624,957 | 507,149 | 378,831 |
| Total assets | US$ in thousands | 796,506 | 768,206 | 710,018 | 693,686 | 591,523 |
| Total asset turnover | 0.85 | 0.79 | 0.88 | 0.73 | 0.64 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $678,722K ÷ $796,506K
= 0.85
Total asset turnover is a key financial ratio that indicates how efficiently a company is utilizing its assets to generate revenue. In the case of Harmonic Inc, the total asset turnover has shown an improving trend over the past five years.
As of December 31, 2020, the total asset turnover ratio was 0.64, indicating that for every dollar of assets, the company generated $0.64 in revenue. This ratio increased to 0.73 by the end of 2021, signaling an improvement in asset utilization efficiency.
By December 31, 2022, the total asset turnover ratio further improved to 0.88, suggesting that the company was able to generate $0.88 in revenue for every dollar of assets. However, in 2023, the ratio slightly dropped to 0.79 before picking up again to reach 0.85 by the end of 2024.
Overall, the increasing trend in total asset turnover indicates that Harmonic Inc has been more efficient in utilizing its assets to generate revenue over the years, which is a positive sign for the company's operational performance.
Peer comparison
Dec 31, 2024