Howmet Aerospace Inc (HWM)
Total asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,430,000 | 7,270,000 | 7,093,000 | 6,861,000 | 6,640,000 | 6,422,000 | 6,197,000 | 5,942,000 | 5,663,000 | 5,435,000 | 5,285,000 | 5,087,000 | 4,972,000 | 4,925,000 | 4,776,000 | 4,834,000 | 6,834,000 | 8,997,000 | 11,422,000 | 13,860,000 |
| Total assets | US$ in thousands | 10,519,000 | 10,558,000 | 10,679,000 | 10,410,000 | 10,428,000 | 10,166,000 | 10,233,000 | 10,174,000 | 10,255,000 | 9,929,000 | 10,052,000 | 10,129,000 | 10,219,000 | 10,357,000 | 10,379,000 | 10,971,000 | 11,446,000 | 11,339,000 | 11,363,000 | 18,465,000 |
| Total asset turnover | 0.71 | 0.69 | 0.66 | 0.66 | 0.64 | 0.63 | 0.61 | 0.58 | 0.55 | 0.55 | 0.53 | 0.50 | 0.49 | 0.48 | 0.46 | 0.44 | 0.60 | 0.79 | 1.01 | 0.75 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $7,430,000K ÷ $10,519,000K
= 0.71
Total asset turnover is a financial ratio that measures a company's ability to generate revenue from its assets. It shows how efficiently a company is using its assets to generate sales.
Analyzing the data provided for Howmet Aerospace Inc, we observe fluctuations in the total asset turnover ratio over time. The ratio fluctuated between 0.44 and 1.01 from March 31, 2020, to December 31, 2024.
The trend indicates that there was a decline in total asset turnover in the initial period, with a low of 0.44 on March 31, 2021. This may suggest inefficiency in asset utilization or a slowdown in revenue generation relative to the assets held during that period.
However, there was an upward trend from March 31, 2021, to December 31, 2024, with the ratio steadily increasing from 0.44 to 0.71. This improvement could indicate more efficient asset management, better sales performance, or strategic changes that have positively impacted revenue generation in relation to the assets employed.
Overall, a total asset turnover ratio that is increasing over time suggests that Howmet Aerospace Inc is becoming more efficient in generating sales from its assets, which can be a positive indicator of operational performance and financial health. However, it would be important to delve deeper into the company's operations and strategies to understand the factors driving these fluctuations in the total asset turnover ratio.
Peer comparison
Dec 31, 2024