Jack In The Box Inc (JACK)

Total asset turnover

		Jan 21, 2024	Sep 30, 2023	Jul 9, 2023	Apr 16, 2023	Jan 22, 2023	Sep 30, 2022	Jul 10, 2022	Apr 17, 2022	Jan 23, 2022	Sep 30, 2021	Jun 30, 2021	Apr 11, 2021	Jan 17, 2021	Sep 30, 2020	Jul 5, 2020	Apr 12, 2020	Jan 19, 2020	Sep 30, 2019	Jul 7, 2019	Apr 14, 2019
Revenue (ttm)	US$ in thousands	1,652,708	1,692,306	1,722,555	1,723,918	1,650,468	1,468,083	1,343,764	1,214,917	1,149,840	1,143,670	1,120,617	1,093,434	1,052,374	1,021,506	987,340	967,424	966,994	950,107	906,344	871,968
Total assets	US$ in thousands	2,887,260	3,001,090	2,951,780	2,903,380	2,907,020	2,922,510	2,863,770	2,823,750	1,758,600	1,750,140	1,787,470	1,790,780	1,913,570	1,906,490	1,886,700	1,861,250	1,690,310	958,483	831,270	832,127
Total asset turnover		0.57	0.56	0.58	0.59	0.57	0.50	0.47	0.43	0.65	0.65	0.63	0.61	0.55	0.54	0.52	0.52	0.57	0.99	1.09	1.05

January 21, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,652,708K ÷ $2,887,260K
= 0.57

Total asset turnover measures the efficiency of Jack In The Box, Inc. in generating sales revenue from its total assets. A higher total asset turnover indicates that the company is utilizing its assets more effectively to generate revenue.

From the data provided, we observe fluctuations in the total asset turnover ratio over the past quarters. In Q1 2023, Q4 2022, and Q3 2022, the total asset turnover was below 0.50, suggesting that the company was not efficiently utilizing its assets to generate sales. However, starting from Q2 2022, there is a noticeable increasing trend in the total asset turnover ratio, reaching a peak of 0.59 in Q2 2023. This indicates an improvement in asset efficiency, with the company generating more sales revenue per dollar of assets.

Although there was a slight dip in Q3 2023 and Q4 2023, the total asset turnover remained relatively stable around 0.56 to 0.58. Overall, Jack In The Box, Inc. appears to be improving its asset utilization efficiency, which is a positive sign for investors as it shows the company's ability to maximize sales from its asset base. Continual monitoring of this ratio will be essential to assess the company's ongoing operational efficiency and performance.