Liquidity Services Inc (LQDT)

Total asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	317,224	317,482	311,747	299,959	286,259	280,398	275,343	275,513	269,007	258,140	243,702	221,755	213,011	206,885	209,785	219,114	223,264	227,760	221,675	214,955
Total assets	US$ in thousands	278,425	288,970	283,027	283,097	269,201	288,104	282,810	276,819	286,878	255,576	238,403	217,583	205,254	196,634	198,864	182,072	179,196	187,283	190,668	193,109
Total asset turnover		1.14	1.10	1.10	1.06	1.06	0.97	0.97	1.00	0.94	1.01	1.02	1.02	1.04	1.05	1.05	1.20	1.25	1.22	1.16	1.11

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $317,224K ÷ $278,425K
= 1.14

Total asset turnover is a financial ratio that measures a company's ability to generate revenue from its assets. A higher total asset turnover indicates that a company is more efficient in generating sales from its assets.

Looking at the data for Liquidity Services Inc from Q2 2022 to Q1 2024, we observe fluctuations in the total asset turnover ratio. In Q2 2022 and Q3 2022, the ratio was at 0.97, which indicates that the company generated $0.97 in sales for every $1 of assets.

Subsequently, there was an uptick in the ratio to 0.99 in Q2 2023 before further increasing to 1.06 in both Q1 and Q2 2023. This demonstrates an improvement in the company's efficiency in utilizing its assets to generate revenue.

The ratio peaked at 1.09 in Q3 2023 and Q4 2023, indicating that Liquidity Services Inc was successful in generating sales relative to its total assets during this period.

In Q1 2024, the ratio slightly increased to 1.13, reflecting the company's ability to enhance its asset turnover further. Overall, the trend in total asset turnover for Liquidity Services Inc shows an improvement in asset utilization efficiency over the periods analyzed.