Hexcel Corporation (HXL)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,903,000 | 1,758,000 | 1,541,500 | 1,286,400 | 1,460,600 |
| Total assets | US$ in thousands | 2,725,600 | 2,918,500 | 2,837,300 | 2,819,400 | 2,917,800 |
| Total asset turnover | 0.70 | 0.60 | 0.54 | 0.46 | 0.50 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,903,000K ÷ $2,725,600K
= 0.70
Based on the provided data, Hexcel Corporation's total asset turnover ratio has shown a fluctuating trend over the past five years. The total asset turnover ratio measures the efficiency with which the company's assets are being utilized to generate sales.
In December 2020, the total asset turnover ratio stood at 0.50, indicating that for every dollar of assets, the company generated 50 cents in revenue. This ratio decreased to 0.46 by December 2021, suggesting a decrease in asset efficiency. Subsequently, there was an improvement in December 2022, with the ratio increasing to 0.54, and further improvement in December 2023 to 0.60.
The significant increase in the total asset turnover ratio to 0.70 by December 2024 indicates that Hexcel Corporation has become more efficient in utilizing its assets to generate revenue. This improvement may signify better management of inventory, effective use of assets, or an increase in sales volume relative to the assets employed.
Overall, the upward trend in the total asset turnover ratio from 2020 to 2024 suggests that Hexcel Corporation has been able to enhance its asset utilization efficiency, potentially leading to improved profitability and overall financial performance.
Peer comparison
Dec 31, 2024