Materion Corporation (MTRN)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,633,630 | 1,735,870 | 1,504,450 | 1,174,500 | 1,182,840 |
| Total assets | US$ in thousands | 1,762,730 | 1,691,980 | 1,607,480 | 1,057,860 | 898,430 |
| Total asset turnover | 0.93 | 1.03 | 0.94 | 1.11 | 1.32 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,633,630K ÷ $1,762,730K
= 0.93
The total asset turnover ratio for Materion Corp has experienced fluctuations over the past five years. The ratio declined from 1.39 in 2019 to 0.94 in 2021 before slightly increasing to 1.04 in 2022 and then decreasing again to 0.94 in 2023.
A total asset turnover ratio of less than 1 indicates that the company is generating less in sales relative to its total assets, which may suggest inefficiency in asset utilization. However, it is essential to consider the industry norms and specific circumstances of Materion Corp before drawing definitive conclusions.
The declining trend in total asset turnover could imply challenges in effectively using its assets to generate sales revenues. Further analysis of the company's operations and financial strategy may be necessary to identify the underlying reasons for the fluctuating ratio and to determine areas for improvement in asset management efficiency.