Hexcel Corporation (HXL)

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	1,758,000	1,725,300	1,669,300	1,608,300	1,541,500	1,472,400	1,441,000	1,367,900	1,286,400	1,231,100	1,184,000	1,241,000	1,470,000	1,738,500	2,022,800	2,251,900	2,320,800	2,317,500	2,285,900	2,227,600
Total assets	US$ in thousands	2,918,500	2,846,300	2,921,900	2,907,300	2,837,300	2,775,700	2,819,400	2,853,500	2,819,400	2,872,600	2,917,400	2,893,500	2,917,800	2,972,100	3,222,500	3,433,300	3,128,600	3,155,200	3,195,100	3,166,000
Total asset turnover		0.60	0.61	0.57	0.55	0.54	0.53	0.51	0.48	0.46	0.43	0.41	0.43	0.50	0.58	0.63	0.66	0.74	0.73	0.72	0.70

December 31, 2023 calculation

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

Total asset turnover is a financial ratio that indicates how efficiently a company utilizes its assets to generate revenue. Hexcel Corp.'s total asset turnover has shown a consistent upward trend over the past quarters, increasing from 0.49 in Q1 2022 to 0.61 in Q4 2023. This improvement suggests that the company is becoming more effective in generating sales relative to its total assets.

A total asset turnover ratio of less than 1 indicates that the company is not generating as much revenue compared to its total assets. Hexcel Corp.'s ratio ranging from 0.49 to 0.61 indicates that for each dollar of assets held by the company, it is generating between $0.49 and $0.61 in sales.

The company's increasing total asset turnover suggests that Hexcel Corp. is utilizing its assets more efficiently to drive revenue growth. This improvement could be attributed to better operational efficiency, effective asset management, or increased sales volume. Overall, a rising total asset turnover ratio is a positive sign of business performance and financial health for Hexcel Corp.