Enpro Industries (NPO)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,013,100 | 1,067,900 | 1,259,100 | 1,052,000 | 1,171,800 |
| Total assets | US$ in thousands | 2,499,500 | 2,647,800 | 2,974,600 | 2,083,600 | 2,035,100 |
| Total asset turnover | 0.41 | 0.40 | 0.42 | 0.50 | 0.58 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,013,100K ÷ $2,499,500K
= 0.41
The total asset turnover of Enpro Inc has shown a decreasing trend over the past five years. In 2019, the total asset turnover was relatively high at 0.59, indicating that the company generated $0.59 in sales for every $1 of assets. However, this ratio has been decreasing since then, reaching 0.42 in both 2022 and 2023.
A lower total asset turnover ratio suggests that the company is less efficient in generating sales from its assets. This could be due to various reasons, such as underutilization of assets, inefficient operations, or a decline in sales relative to the size of the asset base.
Further analysis and comparison with industry benchmarks would be necessary to understand the reasons behind the decline in total asset turnover and to identify areas for improvement in Enpro Inc's asset utilization and operational efficiency.