Keysight Technologies Inc (KEYS)
Total asset turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,979,000 | 5,464,000 | 5,420,000 | 4,941,000 | 4,221,000 |
| Total assets | US$ in thousands | 9,269,000 | 8,683,000 | 8,098,000 | 7,781,000 | 7,218,000 |
| Total asset turnover | 0.54 | 0.63 | 0.67 | 0.64 | 0.58 |
October 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,979,000K ÷ $9,269,000K
= 0.54
Over the past five years, Keysight Technologies Inc's total asset turnover ratio has exhibited a fluctuating trend. The ratio declined from 0.58 in October 2020 to 0.54 in October 2024, with intermittent increases and decreases in between. This implies that the company generated $0.54 in revenue for every dollar of assets in 2024.
A total asset turnover ratio below 1 could indicate inefficiency in asset utilization, suggesting that the company may not be effectively generating revenue from its assets. However, it is essential to consider industry norms and compare with competitors to gain a better understanding of the company's performance.
The decreasing trend in total asset turnover may prompt further analysis into the company's operational efficiency, asset management strategies, and potential factors impacting revenue generation relative to the level of assets employed. Regular monitoring and assessment of this ratio can provide insights into the company's overall operational effectiveness and ability to generate revenue from its asset base.
Peer comparison
Oct 31, 2024