Ichor Holdings Ltd (ICHR)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 849,040 | 811,120 | 1,280,070 | 1,096,920 | 914,236 |
| Total assets | US$ in thousands | 995,564 | 938,481 | 1,083,740 | 1,020,880 | 774,172 |
| Total asset turnover | 0.85 | 0.86 | 1.18 | 1.07 | 1.18 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $849,040K ÷ $995,564K
= 0.85
Ichor Holdings Ltd's total asset turnover ratio indicates how efficiently the company is utilizing its assets to generate revenue. The trend in the total asset turnover ratio from December 31, 2020 to December 31, 2024 shows fluctuations.
- In 2020, the total asset turnover ratio stood at 1.18, indicating that the company generated $1.18 in sales for every $1 of assets it had.
- The ratio decreased to 1.07 by December 31, 2021, suggesting a slight decrease in asset efficiency in generating revenue.
- It then increased back to 1.18 by December 31, 2022, which indicates a better utilization of assets to generate sales.
- However, there was a significant drop in the ratio to 0.86 by December 31, 2023, signaling a potential decline in asset efficiency in revenue generation.
- The ratio further declined to 0.85 by December 31, 2024, indicating a continued decrease in asset efficiency.
The declining trend in total asset turnover from 2020 to 2024 suggests that the company may be facing challenges in effectively utilizing its assets to generate revenue. Further analysis of the company's operations and asset management strategies may be needed to address this decline in asset turnover.
Peer comparison
Dec 31, 2024