Hertz Global Holdings Inc (HTZ)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,371,000 | 8,685,000 | 7,336,000 | 5,258,000 | 9,779,000 |
| Total assets | US$ in thousands | 24,605,000 | 22,497,000 | 19,783,000 | 16,908,000 | 24,627,000 |
| Total asset turnover | 0.38 | 0.39 | 0.37 | 0.31 | 0.40 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $9,371,000K ÷ $24,605,000K
= 0.38
The total asset turnover ratio for Hertz Global Holdings Inc. has shown a slightly decreasing trend over the years, from 0.37 in 2021 to 0.39 in 2022, and further to 0.38 in 2023. This ratio indicates that for every dollar of total assets, the company generated $0.38 in revenue in 2023.
A decreasing total asset turnover ratio may suggest that the company is becoming less efficient in generating sales from its total assets. It could be indicative of issues such as underutilization of assets, inventory management problems, or pricing pressures, which may be impacting the company's ability to generate revenue efficiently.
Further investigation into the drivers of this trend, including a detailed analysis of the company's asset management and sales generation strategies, is warranted to understand the underlying reasons for the decline in total asset turnover.
Peer comparison
Dec 31, 2023