MSA Safety (MSA)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,808,140 | 1,787,650 | 1,527,950 | 1,400,180 | 1,348,220 |
| Total assets | US$ in thousands | 2,205,780 | 2,170,150 | 2,376,980 | 2,396,400 | 1,872,480 |
| Total asset turnover | 0.82 | 0.82 | 0.64 | 0.58 | 0.72 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,808,140K ÷ $2,205,780K
= 0.82
The total asset turnover ratio for MSA Safety has shown fluctuating trends over the past five years, standing at 0.72 as of December 31, 2020, declining to 0.58 by December 31, 2021, and then improving to 0.64 by December 31, 2022. Subsequently, there was a significant increase in the ratio to 0.82 by December 31, 2023, which was maintained at the same level as of December 31, 2024.
A total asset turnover ratio below 1 indicates that the company is generating less in sales in comparison to its total assets. The decreasing trend in 2021 may suggest inefficiencies in asset utilization or a decrease in sales relative to the total assets during that period. However, the improvements seen in 2022 and the notable increase in 2023 and 2024 may indicate enhanced efficiency in utilizing assets to generate sales or a growth in revenue relative to the assets invested.
It is essential for MSA Safety to continue monitoring and managing its asset turnover ratio effectively to ensure optimal utilization of its assets in generating revenue and to support sustainable business growth in the future.
Peer comparison
Dec 31, 2024