MACOM Technology Solutions Holdings Inc (MTSI)

Total asset turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	729,578	648,407	675,170	606,920	530,037
Total assets	US$ in thousands	1,755,640	1,553,240	1,571,820	1,134,140	1,146,430
Total asset turnover		0.42	0.42	0.43	0.54	0.46

September 30, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $729,578K ÷ $1,755,640K
= 0.42

The total asset turnover ratio for MACOM Technology Solutions Holdings Inc has remained relatively stable over the past five years, ranging between 0.42 and 0.54. This ratio indicates the company's ability to generate revenue from its total assets. A lower ratio suggests that the company is less efficient in utilizing its assets to generate sales, while a higher ratio indicates better asset utilization.

The decreasing trend from 0.54 in 2021 to 0.42 in 2024 may signal a potential decrease in efficiency in generating sales from total assets. It is essential for the company to closely monitor this ratio to ensure efficient asset management and maximize revenue generation. Further analysis of the company's operations and asset management strategies is recommended to identify areas for improvement and sustain long-term growth and profitability.