Innospec Inc (IOSP)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,845,600 | 1,948,800 | 1,963,700 | 1,483,400 | 1,192,300 |
| Total assets | US$ in thousands | 1,734,700 | 1,707,400 | 1,603,700 | 1,570,900 | 1,397,400 |
| Total asset turnover | 1.06 | 1.14 | 1.22 | 0.94 | 0.85 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,845,600K ÷ $1,734,700K
= 1.06
Innospec Inc's total asset turnover has shown a fluctuating trend over the past five years. The ratio increased from 0.85 in December 2020 to 1.22 in December 2022, indicating that the company generated $1.22 in revenue for every $1 of total assets invested in the business during that year. This significant improvement suggests improved efficiency in asset utilization and sales generation.
However, the ratio decreased to 1.14 in December 2023 and further to 1.06 in December 2024. Although the ratio is still above 1, indicating that the company is generating more revenue relative to its total assets, the declining trend may point towards potential inefficiencies in asset utilization or challenges in revenue generation in the more recent years.
It is important for Innospec Inc to closely monitor this ratio and assess the factors influencing the fluctuations to ensure optimal utilization of assets and sustainable revenue generation in the future.
Peer comparison
Dec 31, 2024