Hexcel Corporation (HXL)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,758,000	1,541,500	1,286,400	1,460,600	2,310,200
Total assets	US$ in thousands	2,918,500	2,837,300	2,819,400	2,917,800	3,128,600
Total asset turnover		0.60	0.54	0.46	0.50	0.74

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,758,000K ÷ $2,918,500K
= 0.60

Hexcel Corp.'s total asset turnover has shown fluctuations over the past five years, ranging from 0.47 in 2021 to 0.75 in 2019. The ratio indicates the company's efficiency in generating sales revenue from its total assets. A higher total asset turnover is generally preferred as it suggests that the company is effectively using its assets to generate sales.

In the case of Hexcel Corp., the ratio has been below 1 for each of the five years, implying that the company is not generating a significant level of sales from its total assets. The declining trend from 2019 to 2021 may indicate a decrease in asset utilization efficiency during those years. However, the improvement seen in 2023 compared to 2022 suggests a positive turnaround in utilizing assets to generate sales revenue.

Further analysis incorporating industry benchmarks and comparison with competitors would provide a better understanding of Hexcel Corp.'s performance in asset utilization and its competitive position.