Merit Medical Systems Inc (MMSI)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,236,650	1,143,170	1,068,790	952,099	982,685
Total assets	US$ in thousands	2,325,240	1,663,970	1,648,290	1,664,400	1,757,320
Total asset turnover		0.53	0.69	0.65	0.57	0.56

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,236,650K ÷ $2,325,240K
= 0.53

Total asset turnover is a key financial ratio used to assess a company's efficiency in generating revenue relative to its total assets. A higher total asset turnover indicates that the company is more effective in utilizing its assets to generate sales.

Looking at the data provided for Merit Medical Systems, Inc., we observe fluctuations in the total asset turnover ratio over the last five years. In 2023, the total asset turnover ratio was 0.54, indicating that for every dollar of assets, the company generated $0.54 in revenue. This represents a decrease from the previous year, where the ratio was 0.69.

The trend over the past five years shows some variation, with the ratio ranging from 0.57 to 0.69. While there was an improvement in 2022 compared to 2021, there seems to be a decline in 2023. This downward trend may suggest that Merit Medical Systems, Inc. may be experiencing challenges in efficiently utilizing its assets to generate sales.

It is important for the company to closely monitor this ratio and identify the underlying reasons for the fluctuations. By improving asset efficiency and optimizing the utilization of assets, Merit Medical Systems, Inc. can potentially enhance its total asset turnover, signaling improved operational performance and potentially higher profitability.