Mercer International Inc (MERC)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,902,410 | 2,225,980 | 1,713,880 | 1,327,140 | 1,535,420 |
| Total assets | US$ in thousands | 2,662,580 | 2,725,040 | 2,351,230 | 2,129,130 | 2,065,720 |
| Total asset turnover | 0.71 | 0.82 | 0.73 | 0.62 | 0.74 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,902,410K ÷ $2,662,580K
= 0.71
Mercer International Inc.'s total asset turnover has fluctuated over the past five years. The ratio indicates the company's efficiency in generating sales revenue relative to its total assets. In 2023, the total asset turnover decreased to 0.75 from 0.84 in 2022, indicating a decline in the company's ability to generate sales with its total assets. Despite this decrease, the ratio remains relatively stable compared to 2021 and 2019. Overall, Mercer International Inc. should focus on improving its asset utilization to enhance its revenue generation efficiency.