Innoviva Inc (INVA)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 291,306 | 294,888 | 372,796 | 318,463 | 242,036 |
| Total assets | US$ in thousands | 1,243,510 | 1,231,500 | 926,395 | 999,570 | 724,826 |
| Total asset turnover | 0.23 | 0.24 | 0.40 | 0.32 | 0.33 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $291,306K ÷ $1,243,510K
= 0.23
The total asset turnover ratio measures a company's efficiency in generating sales revenue relative to its total assets. A higher ratio indicates that the company is better at utilizing its assets to generate sales.
Innoviva Inc's total asset turnover has fluctuated over the past five years. From 2019 to 2020, there was a slight decrease in the ratio from 0.36 to 0.34, suggesting a temporary inefficiency in asset utilization. However, in 2021, there was a significant improvement as the ratio increased to 0.42, indicating that the company was able to generate more sales revenue per dollar of assets employed.
In the most recent years, the total asset turnover ratio has decreased further to 0.27 in 2022 and 0.25 in 2023. This decline may signal a decrease in the efficiency of the company in utilizing its assets to generate sales.
Overall, Innoviva Inc's total asset turnover ratio has shown mixed results over the past five years. It is important for the company to closely monitor this ratio and implement strategies to improve asset utilization efficiency in order to drive higher revenue generation.
Peer comparison
Dec 31, 2023