Innospec Inc (IOSP)
Total asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,948,800 | 1,964,800 | 2,013,700 | 2,000,900 | 1,963,700 | 1,866,200 | 1,729,300 | 1,616,200 | 1,483,400 | 1,380,200 | 1,269,200 | 1,159,600 | 1,192,200 | 1,272,800 | 1,379,600 | 1,497,100 | 1,513,000 | 1,511,400 | 1,502,600 | 1,498,300 |
| Total assets | US$ in thousands | 1,707,400 | 1,618,600 | 1,610,800 | 1,624,100 | 1,603,700 | 1,669,200 | 1,637,900 | 1,623,800 | 1,570,900 | 1,492,400 | 1,461,800 | 1,426,100 | 1,397,400 | 1,343,700 | 1,339,000 | 1,455,300 | 1,468,800 | 1,494,400 | 1,489,600 | 1,526,600 |
| Total asset turnover | 1.14 | 1.21 | 1.25 | 1.23 | 1.22 | 1.12 | 1.06 | 1.00 | 0.94 | 0.92 | 0.87 | 0.81 | 0.85 | 0.95 | 1.03 | 1.03 | 1.03 | 1.01 | 1.01 | 0.98 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,948,800K ÷ $1,707,400K
= 1.14
Innospec Inc's total asset turnover has shown a fluctuating trend over the past eight quarters, ranging from a low of 1.00 in Q1 2022 to a high of 1.25 in Q2 2023. Total asset turnover measures the efficiency of a company in generating sales revenue from its total assets. A higher total asset turnover indicates better efficiency in asset utilization.
In general, total asset turnover above 1.0 means the company is generating more in sales revenue compared to its total assets, which can be seen in all quarters provided. The increasing trend from Q1 2022 to Q2 2023 suggests that Innospec Inc has been improving its efficiency in asset utilization over time. However, the decrease in Q3 2023 and Q4 2023 may indicate a temporary slowdown in asset turnover efficiency.
Overall, Innospec Inc's total asset turnover has been reasonably solid, indicating effective management of its assets to generate sales revenue. The company should continue to monitor and strive to maintain or improve this ratio to ensure optimal utilization of its assets in driving revenue growth.
Peer comparison
Dec 31, 2023