Howmet Aerospace Inc (HWM)
Total asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,433,000 | 6,183,000 | 5,969,000 | 5,711,000 | 5,433,000 | 5,204,000 | 4,929,000 | 4,699,000 | 4,565,000 | 4,582,000 | 4,540,000 | 4,551,000 | 6,523,000 | 8,686,000 | 11,183,000 | 13,758,000 | 14,192,000 | 14,263,000 | 14,228,000 | 14,110,000 |
| Total assets | US$ in thousands | 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 | 11,443,000 | 11,339,000 | 11,363,000 | 18,465,000 | 17,562,000 | 17,484,000 | 17,913,000 | 18,361,000 |
| Total asset turnover | 0.62 | 0.61 | 0.58 | 0.56 | 0.53 | 0.52 | 0.49 | 0.46 | 0.45 | 0.44 | 0.44 | 0.41 | 0.57 | 0.77 | 0.98 | 0.75 | 0.81 | 0.82 | 0.79 | 0.77 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $6,433,000K ÷ $10,428,000K
= 0.62
The total asset turnover ratio measures the efficiency with which Howmet Aerospace Inc generates revenue from its total assets. A higher ratio indicates better asset utilization.
Over the past eight quarters, Howmet Aerospace Inc's total asset turnover ratio has been steadily improving, moving from 0.50 in Q1 2022 to 0.64 in Q4 2023. This indicates that the company has been able to generate more revenue from its assets over time.
The consistent upward trend in total asset turnover suggests that Howmet Aerospace Inc has been effectively managing its assets to drive sales and improve operational efficiency. This could be attributed to better inventory management, increased sales volume, or more efficient utilization of its fixed assets.
Overall, the increasing total asset turnover ratio reflects positively on Howmet Aerospace Inc's ability to optimize its asset base and generate revenue, which could lead to improved financial performance and shareholder value in the long run.
Peer comparison
Dec 31, 2023