Mister Car Wash Inc (MCW)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 851,841 | 835,560 | 692,541 |
| Total assets | US$ in thousands | 2,881,540 | 2,686,230 | 2,448,100 |
| Total asset turnover | 0.30 | 0.31 | 0.28 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $851,841K ÷ $2,881,540K
= 0.30
Total asset turnover is a key financial ratio that measures a company's efficiency in generating sales revenue from its total assets. Mister Car Wash Inc's total asset turnover has shown a slight decrease over the past three years, from 0.31 in 2021 to 0.32 in 2023. This indicates that, on average, the company is generating $0.32 in sales for every $1 of total assets it holds.
While the decrease is relatively marginal, it suggests that Mister Car Wash Inc may be slightly less efficient in utilizing its assets to drive sales compared to the previous year. This could be due to various factors such as changes in the company's operating efficiency, pricing strategies, or asset management practices.
Overall, a total asset turnover ratio of around 0.32 to 0.33 indicates that Mister Car Wash Inc may need to focus on optimizing its asset utilization to improve its sales generation efficiency in the future. A higher total asset turnover ratio would indicate that the company is effectively generating more sales from its assets, which is generally a positive indicator of operational efficiency and financial performance.
Peer comparison
Dec 31, 2023