Merit Medical Systems Inc (MMSI)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,354,690 | 1,236,650 | 1,143,170 | 1,068,790 | 952,099 |
| Total assets | US$ in thousands | 2,418,600 | 2,325,240 | 1,663,970 | 1,648,290 | 1,664,400 |
| Total asset turnover | 0.56 | 0.53 | 0.69 | 0.65 | 0.57 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,354,690K ÷ $2,418,600K
= 0.56
Total asset turnover measures the efficiency with which a company utilizes its assets to generate revenue. In the case of Merit Medical Systems Inc, the trend in total asset turnover over the past five years shows fluctuations. In 2020, the total asset turnover was 0.57, indicating that the company generated $0.57 in sales for every dollar of assets. This metric improved to 0.65 in 2021 and further to 0.69 in 2022, suggesting enhanced asset utilization during those periods.
However, there was a decline in total asset turnover to 0.53 in 2023, signaling a potential inefficiency in utilizing assets to drive revenue. This decline raises concerns about the company's ability to optimize its asset base effectively. In 2024, the total asset turnover slightly recovered to 0.56 but remained below the levels seen in the previous years.
Overall, Merit Medical Systems Inc's total asset turnover has displayed a mixed performance over the years, reflecting fluctuations in how efficiently the company generates revenue from its asset base. It is essential for the company to focus on improving this ratio consistently to ensure optimal asset utilization and sustainable growth in the future.
Peer comparison
Dec 31, 2024