IPG Photonics Corporation (IPGP)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 977,134 | 1,287,440 | 1,429,550 | 1,460,860 | 1,200,720 |
| Total assets | US$ in thousands | 2,289,260 | 2,698,900 | 2,743,280 | 3,170,540 | 2,935,700 |
| Total asset turnover | 0.43 | 0.48 | 0.52 | 0.46 | 0.41 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $977,134K ÷ $2,289,260K
= 0.43
Total asset turnover measures how efficiently a company is utilizing its assets to generate revenue. For IPG Photonics Corporation, the total asset turnover has shown fluctuations over the years.
In 2020, the total asset turnover was 0.41, indicating that the company generated $0.41 in revenue for every dollar of assets. The ratio improved to 0.46 in 2021, suggesting better asset utilization. It continued to increase to 0.52 in 2022, signaling further efficiency in generating revenue from its assets.
However, there was a slight decline in 2023, with the total asset turnover dropping to 0.48. This may indicate some challenges in optimizing asset efficiency that year. In 2024, the ratio decreased further to 0.43, reflecting a potential decrease in revenue generated relative to the amount of assets employed.
Overall, IPG Photonics Corporation's total asset turnover has shown variability, with periods of improvement and some declines. Further analysis would be needed to understand the reasons behind these fluctuations and to assess the company's overall asset management efficiency.
Peer comparison
Dec 31, 2024