IPG Photonics Corporation (IPGP)

Total asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	977,134	1,041,690	1,109,948	1,192,274	1,287,439	1,322,085	1,369,690	1,406,742	1,429,547	1,460,475	1,490,619	1,485,254	1,460,860	1,433,023	1,372,314	1,297,067	1,200,724	1,170,721	1,181,418	1,248,776
Total assets	US$ in thousands	2,289,260	2,355,130	2,495,430	2,598,440	2,698,900	2,672,860	2,696,420	2,671,160	2,743,280	2,962,520	3,048,770	3,098,470	3,170,540	3,143,910	3,086,510	2,982,950	2,935,700	2,794,930	2,758,740	2,680,130
Total asset turnover		0.43	0.44	0.44	0.46	0.48	0.49	0.51	0.53	0.52	0.49	0.49	0.48	0.46	0.46	0.44	0.43	0.41	0.42	0.43	0.47

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $977,134K ÷ $2,289,260K
= 0.43

Total asset turnover measures the efficiency of a company in generating revenue from its assets. For IPG Photonics Corporation, the total asset turnover ratio has shown a fluctuating trend over the past few years. Starting at 0.47 in March 2020, it declined to 0.41 by December 2020, indicating a decrease in the company's ability to use its assets to generate sales.

However, there was a slight improvement in the following quarters, with the ratio gradually increasing to 0.48 by March 2022. The ratio peaked at 0.53 in March 2023, indicating that the company was utilizing its assets more effectively to drive sales during that period.

Subsequently, the total asset turnover ratio fluctuated between 0.46 and 0.51 up to June 2024. This fluctuation suggests that IPG Photonics Corporation has been managing its assets efficiently to generate revenue, but there may be room for further improvement in asset utilization.

Overall, the trend in total asset turnover for IPG Photonics Corporation indicates some variability in the company's ability to generate revenue from its assets over the period analyzed. Further analysis and comparison with industry benchmarks may provide additional insights into the company's asset utilization efficiency.