Mercer International Inc (MERC)

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	1,902,412	2,022,817	2,095,191	2,150,228	2,225,984	2,170,471	2,102,894	1,921,045	1,713,879	1,611,455	1,462,773	1,394,244	1,358,964	1,291,941	1,356,264	1,439,936	1,568,676	1,576,750	1,533,582	1,482,235
Total assets	US$ in thousands	2,662,580	2,655,000	2,633,370	2,740,480	2,725,040	2,543,980	2,415,720	2,456,940	2,351,230	2,231,750	2,214,700	2,178,270	2,129,130	2,044,740	1,973,610	1,951,990	2,065,720	1,949,650	2,029,780	2,013,400
Total asset turnover		0.71	0.76	0.80	0.78	0.82	0.85	0.87	0.78	0.73	0.72	0.66	0.64	0.64	0.63	0.69	0.74	0.76	0.81	0.76	0.74

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,902,412K ÷ $2,662,580K
= 0.71

Mercer International Inc.'s total asset turnover has exhibited a general declining trend over the past eight quarters, with values ranging from 0.75 to 0.89. The total asset turnover ratio measures the efficiency with which the company generates sales revenue relative to its total assets. A higher ratio indicates that the company is generating more sales with fewer assets, highlighting operational efficiency.

In the case of Mercer International Inc., the declining trend in total asset turnover may suggest that the company is becoming less efficient in utilizing its assets to generate sales revenue. This could be a red flag for investors and stakeholders, signaling potential operational inefficiencies or underperformance in sales generation relative to asset investments. It would be advisable for the company to conduct a detailed analysis of its operations and asset utilization to identify and address any underlying issues contributing to the declining total asset turnover ratios observed in recent quarters.