NewMarket Corporation (NEU)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,786,560	2,698,420	2,764,800	2,356,110	2,010,930
Total assets	US$ in thousands	3,129,540	2,308,870	2,406,820	2,558,440	1,933,880
Total asset turnover		0.89	1.17	1.15	0.92	1.04

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $2,786,560K ÷ $3,129,540K
= 0.89

NewMarket Corporation's total asset turnover ratio has fluctuated over the years based on the provided data. In December 2020, the total asset turnover was 1.04, indicating that the company generated $1.04 in sales for every dollar of total assets it had. The ratio decreased to 0.92 by December 2021, suggesting a decline in the company's efficiency in utilizing its assets to generate sales.

However, there was a notable improvement in the total asset turnover ratio in the subsequent years. By December 2022 and December 2023, the ratio increased to 1.15 and 1.17, respectively. This indicates that NewMarket Corporation became more efficient in utilizing its assets to generate sales during these periods.

Nevertheless, there was a decline in the total asset turnover ratio by December 2024, where it dropped to 0.89. This decrease suggests a potential reduction in the company's ability to generate sales relative to its total assets.

Overall, NewMarket Corporation's total asset turnover ratio has shown variability over the years, with a mix of improvements and declines in asset utilization efficiency for sales generation. Further analysis and monitoring of this ratio would be beneficial to assess the company's operational performance and effectiveness in managing its assets.