Innospec Inc (IOSP)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,948,800 | 1,963,700 | 1,483,400 | 1,192,300 | 1,512,300 |
| Total assets | US$ in thousands | 1,707,400 | 1,603,700 | 1,570,900 | 1,397,400 | 1,468,800 |
| Total asset turnover | 1.14 | 1.22 | 0.94 | 0.85 | 1.03 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,948,800K ÷ $1,707,400K
= 1.14
The total asset turnover ratio for Innospec Inc has shown fluctuations over the past five years. In 2023, the ratio decreased to 1.14 from 1.22 in 2022. This implies that the company generated $1.14 in sales for every $1 of total assets in 2023, down from $1.22 in 2022.
The trend over the years indicates that the company has been efficient in utilizing its assets to generate sales, with the ratio generally above 1. However, the decrease in 2023 compared to the previous year could suggest a slightly lower efficiency in asset utilization or changes in the company's operations.
It is important for Innospec Inc to closely monitor its total asset turnover ratio to ensure optimal utilization of assets and efficiency in generating sales revenue. Further analysis would be required to identify the specific factors influencing the fluctuations in the ratio and to determine any necessary strategic adjustments.
Peer comparison
Dec 31, 2023