Hologic Inc (HOLX)
Total asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,030,300 | 4,030,400 | 4,862,800 | 5,632,300 | 3,776,400 |
| Total assets | US$ in thousands | 9,156,000 | 9,139,300 | 9,071,200 | 8,919,900 | 7,195,800 |
| Total asset turnover | 0.44 | 0.44 | 0.54 | 0.63 | 0.52 |
September 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,030,300K ÷ $9,156,000K
= 0.44
Hologic Inc's total asset turnover ratio measures how efficiently the company generates revenue from its total assets. The downward trend in total asset turnover from 0.52 in 2020 to 0.44 in 2024 indicates a decrease in the company's efficiency in utilizing its assets to generate sales. This could be a concern as it suggests that the company is less effective in generating revenue from its assets over the years.
While the total asset turnover ratio of 0.44 in 2023 and 2024 remained consistent, it is relatively low compared to the higher ratios of 0.54 in 2022 and 0.63 in 2021. This indicates that the company may be facing challenges in efficiently utilizing its assets to generate revenue, potentially due to factors such as weakening sales or inefficient asset management.
Investors and stakeholders should closely monitor Hologic Inc's total asset turnover ratio to assess the company's efficiency in utilizing its assets and generating revenue. They may want to investigate the specific reasons behind the declining trend and consider the company's strategies to improve asset utilization and overall financial performance.
Peer comparison
Sep 30, 2024