Insteel Industries Inc (IIIN)
Total asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 649,188 | 826,832 | 590,601 | 472,618 | 455,713 |
| Total assets | US$ in thousands | 447,513 | 471,745 | 390,710 | 337,902 | 293,009 |
| Total asset turnover | 1.45 | 1.75 | 1.51 | 1.40 | 1.56 |
September 30, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $649,188K ÷ $447,513K
= 1.45
The total asset turnover ratio measures a company's ability to generate sales from its assets. A higher ratio indicates that the company is using its assets more efficiently to generate revenue.
In the case of Insteel Industries, Inc., the total asset turnover ratio has fluctuated over the past five years, as evidenced by the following values:
- Sep 30, 2023: 1.45
- Oct 1, 2022: 1.75
- Oct 2, 2021: 1.51
- Oct 3, 2020: 1.40
- Sep 28, 2019: 1.56
The trend shows some variability in the company’s efficiency in generating sales from its assets. In 2022, there was a peak in the ratio at 1.75, indicating that the company generated $1.75 in sales for every $1 of assets. However, this was followed by a decrease in the ratio in 2023 to 1.45. The ratio was also relatively high in 2019 at 1.56.
Overall, while the total asset turnover for Insteel Industries, Inc. has experienced fluctuations, it has generally been above 1, demonstrating an ability to effectively utilize its assets to generate sales. However, the recent decrease in the ratio suggests a potential decrease in sales generated from its assets, which may require further investigation to understand the underlying reasons and to assess the company’s operational efficiency.
Peer comparison
Sep 30, 2023