Howmet Aerospace Inc (HWM)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,422,000 | 5,433,000 | 4,565,000 | 4,881,000 | 13,875,000 |
| Total assets | US$ in thousands | 10,428,000 | 10,255,000 | 10,219,000 | 11,443,000 | 17,562,000 |
| Total asset turnover | 0.62 | 0.53 | 0.45 | 0.43 | 0.79 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,422,000K ÷ $10,428,000K
= 0.62
The total asset turnover ratio for Howmet Aerospace Inc has shown a fluctuating trend over the past five years. In 2023, the total asset turnover ratio improved to 0.64 from the previous year's 0.55, indicating that the company generated $0.64 in sales for each dollar of total assets. This increase suggests that Howmet Aerospace was more efficient in utilizing its assets to generate revenue in 2023 compared to 2022.
Furthermore, the total asset turnover has generally been increasing since 2020 when it was at 0.46. This improvement indicates that the company has been able to enhance its asset utilization efficiency over the years, which is a positive sign for investors and creditors. However, it is important to note that in 2019, the total asset turnover was significantly higher at 0.81, which may suggest that the company was more efficient in generating sales from its assets that year compared to the recent years.
Overall, the upward trend in the total asset turnover ratio signals that Howmet Aerospace has been progressively improving its efficiency in utilizing its assets to generate revenue, reflecting positively on its operational performance and financial health.
Peer comparison
Dec 31, 2023