Materion Corporation (MTRN)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,648,800 | 1,633,630 | 1,735,870 | 1,504,450 | 1,174,500 |
| Total assets | US$ in thousands | 1,697,630 | 1,762,730 | 1,691,980 | 1,607,480 | 1,057,860 |
| Total asset turnover | 0.97 | 0.93 | 1.03 | 0.94 | 1.11 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,648,800K ÷ $1,697,630K
= 0.97
Total asset turnover is a key financial ratio that measures a company's efficiency in generating sales revenue from its total assets. Materion Corporation's total asset turnover has shown some fluctuations over the past five years.
In December 31, 2020, the total asset turnover was 1.11, indicating that Materion generated $1.11 in sales for every $1 of assets it held. However, this ratio decreased to 0.94 by December 31, 2021, signaling a decline in efficiency in utilizing its assets to generate sales.
There was a slight improvement in the total asset turnover to 1.03 by December 31, 2022, suggesting better asset utilization to drive sales revenue. However, this improvement was not sustained as the ratio decreased to 0.93 by December 31, 2023, indicating a decrease in sales generated per dollar of assets.
By December 31, 2024, the total asset turnover increased slightly to 0.97, but it remained below the levels observed in 2020 and 2022. This trend suggests that Materion Corporation may need to focus on improving its asset efficiency to enhance sales generation in the future. Overall, the fluctuating total asset turnover ratios may indicate varying levels of effectiveness in utilizing assets to drive revenue over the years.