Littelfuse Inc (LFUS)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,310,490 | 2,463,320 | 2,044,240 | 1,439,720 | 1,476,410 |
| Total assets | US$ in thousands | 3,995,280 | 3,903,730 | 3,151,700 | 2,747,590 | 2,559,900 |
| Total asset turnover | 0.58 | 0.63 | 0.65 | 0.52 | 0.58 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,310,490K ÷ $3,995,280K
= 0.58
Littelfuse Inc's total asset turnover has exhibited some fluctuations over the past five years. The ratio decreased from 0.58 in 2019 to 0.52 in 2020 before increasing to 0.65 in 2021. However, it declined again to 0.63 in 2022 and further to 0.58 in 2023.
A total asset turnover ratio below 1 indicates that the company is generating less in sales compared to its total assets. The decreasing trend observed in recent years may suggest inefficiencies in utilizing the company's assets to generate revenue.
A lower total asset turnover could be a result of various factors such as underutilization of assets, excessive levels of inventory, or other operational inefficiencies. It is essential for Littelfuse Inc to assess and address the root causes of this declining trend in order to improve the efficiency of its asset utilization and ultimately enhance its financial performance.
Peer comparison
Dec 31, 2023