Kirby Corporation (KEX)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,047,860	2,748,750	2,210,980	2,171,410	2,838,400
Total assets	US$ in thousands	5,722,200	5,554,920	5,399,060	5,924,170	6,079,100
Total asset turnover		0.53	0.49	0.41	0.37	0.47

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $3,047,860K ÷ $5,722,200K
= 0.53

The total asset turnover ratio for Kirby Corp. has shown variability over the past five years. It indicates the company's efficiency in generating revenue relative to its total assets. The trend reveals an increase from 0.37 in 2020 to 0.54 in 2023, suggesting that the company has become more effective in utilizing its assets to generate sales. However, the ratio dipped to 0.42 in 2021 before increasing further.

The rise in total asset turnover signifies that Kirby Corp. has been able to improve its operational efficiency and asset utilization, which can lead to higher revenue generation per dollar of assets invested. This could be attributed to improved business processes, better inventory or accounts receivable management, or increased sales volume without a significant rise in assets. It is essential for the company to monitor and sustain this trend to ensure continued growth and profitability.