Kenvue Inc. (KVUE)

Total asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023
Revenue (ttm)	US$ in thousands	15,369,000	15,389,000	15,294,000	15,238,000	15,291,000
Total assets	US$ in thousands	25,601,000	26,925,000	26,443,000	27,283,000	27,851,000
Total asset turnover		0.60	0.57	0.58	0.56	0.55

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $15,369,000K ÷ $25,601,000K
= 0.60

Total asset turnover is a key financial ratio that measures a company's ability to generate revenue relative to its total assets. In the case of Kenvue Inc., over the five consecutive quarters from December 31, 2023, to December 31, 2024, the company's total asset turnover has displayed a generally positive trend.

At the end of December 31, 2023, the total asset turnover stood at 0.55, indicating that for every dollar of total assets, the company generated $0.55 in revenue over the trailing twelve-month period. Subsequently, the ratio increased to 0.56 by March 31, 2024, further to 0.58 by June 30, 2024, and slightly dipped to 0.57 by September 30, 2024. However, by the end of December 31, 2024, the total asset turnover reached its peak at 0.60, suggesting that the company had become more efficient in utilizing its assets to generate revenue.

This upward trend in the total asset turnover ratio indicates that Kenvue Inc. has been increasingly effective in leveraging its total assets, such as machinery, inventory, and other resources, to drive sales and revenue generation. A rising total asset turnover ratio is generally a positive sign, as it signifies that the company is utilizing its assets efficiently to produce sales. This could be attributed to improved asset utilization, better inventory management, or enhanced operational efficiency within the organization. Overall, the trend in Kenvue Inc.'s total asset turnover ratio reflects positively on the company's operational performance and efficiency in generating revenue from its asset base.