NewMarket Corporation (NEU)

Total asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	2,786,558	2,775,261	2,717,464	2,692,366	2,698,419	2,737,628	2,766,527	2,805,036	2,764,799	2,658,807	2,584,965	2,452,047	2,356,110	2,307,324	2,197,986	2,018,129	2,010,931	2,017,595	2,060,543	2,213,096
Total assets	US$ in thousands	3,129,540	3,166,280	3,150,070	3,157,500	2,308,870	2,290,400	2,366,140	2,350,770	2,406,820	2,336,840	2,330,670	2,281,550	2,558,440	2,437,220	2,478,710	2,399,390	1,933,880	1,880,120	1,799,140	1,933,680
Total asset turnover		0.89	0.88	0.86	0.85	1.17	1.20	1.17	1.19	1.15	1.14	1.11	1.07	0.92	0.95	0.89	0.84	1.04	1.07	1.15	1.14

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $2,786,558K ÷ $3,129,540K
= 0.89

The total asset turnover of NewMarket Corporation has shown fluctuations over the past few years. The ratio measures how efficiently the company is utilizing its assets to generate revenue. A higher total asset turnover indicates that the company is effectively using its assets to generate sales.

From March 31, 2020, to December 31, 2021, the total asset turnover ratio decreased gradually from 1.14 to 0.92. This decrease suggests that the company may be facing challenges in generating sales relative to its asset base during this period.

However, there was a slight improvement in the total asset turnover ratio from March 31, 2022, to December 31, 2024, with the ratio increasing from 1.07 to 0.89. This improvement indicates that the company may have become more efficient in utilizing its assets to generate revenue.

Overall, it is important for NewMarket Corporation to continue monitoring and managing its asset turnover ratio to ensure optimal efficiency in its operations and maximize its profitability.