Maximus Inc (MMS)
Total asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,306,200 | 4,904,730 | 4,631,020 | 4,254,480 | 3,461,540 |
| Total assets | US$ in thousands | 4,131,510 | 3,985,800 | 3,992,710 | 4,118,960 | 2,024,700 |
| Total asset turnover | 1.28 | 1.23 | 1.16 | 1.03 | 1.71 |
September 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,306,200K ÷ $4,131,510K
= 1.28
The total asset turnover ratio for Maximus Inc has shown fluctuations over the past five years, ranging from 1.03 to 1.71. This ratio indicates how efficiently the company is utilizing its total assets to generate revenue.
An upward trend in the total asset turnover ratio, such as the increase seen from 2021 to 2020 (1.03 to 1.71), suggests that Maximus Inc has improved its efficiency in generating sales relative to its total assets during that period. This could be a result of better asset management or increased sales volume without a proportional increase in assets.
Conversely, a downward trend in the ratio, as observed from 2020 to 2022 (1.71 to 1.16), may indicate a decrease in efficiency in utilizing total assets to generate revenue. This could be due to factors such as underutilized assets, poor sales performance, or inefficient asset allocation.
Overall, while a high total asset turnover ratio is favorable as it indicates efficient asset utilization, it is essential to analyze the company's specific circumstances and industry benchmarks to gain a better understanding of Maximus Inc's performance and potential areas for improvement.
Peer comparison
Sep 30, 2024