nVent Electric PLC (NVT)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,195,600 | 2,877,800 | 2,414,500 | 1,962,200 | 2,159,300 |
| Total assets | US$ in thousands | 6,161,700 | 4,902,200 | 4,674,200 | 4,366,100 | 4,640,300 |
| Total asset turnover | 0.52 | 0.59 | 0.52 | 0.45 | 0.47 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,195,600K ÷ $6,161,700K
= 0.52
nVent Electric plc's total asset turnover ratio has fluctuated over the past five years, ranging from 0.46 to 0.59. A low total asset turnover ratio indicates that the company is not efficiently utilizing its assets to generate sales revenue. In the most recent year, the total asset turnover ratio decreased to 0.53 from 0.59 in the previous year. This suggests that nVent Electric plc generated $0.53 in sales for every $1 of assets on its balance sheet in 2023.
The decreasing trend in total asset turnover may indicate that the company's asset management efficiency has declined or that its sales have not grown proportionally to its asset base. It would be advisable for nVent Electric plc to closely monitor and potentially optimize its asset utilization strategies to improve this ratio and enhance overall operational efficiency.
Peer comparison
Dec 31, 2023