nVent Electric PLC (NVT)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,006,100 | 3,263,600 | 2,909,000 | 2,462,000 | 1,998,600 |
| Total assets | US$ in thousands | 6,734,900 | 6,161,700 | 4,902,200 | 4,674,200 | 4,366,100 |
| Total asset turnover | 0.45 | 0.53 | 0.59 | 0.53 | 0.46 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,006,100K ÷ $6,734,900K
= 0.45
nVent Electric PLC's total asset turnover has shown a fluctuating trend over the past five years. The ratio was 0.46 in December 31, 2020, indicating that the company generated $0.46 in revenue for every $1 of total assets.
By December 31, 2021, the total asset turnover improved to 0.53, suggesting the company became more efficient in utilizing its assets to generate revenue. This trend continued into December 31, 2022, where the ratio further increased to 0.59, showcasing an even more efficient use of assets.
However, in December 31, 2023, the total asset turnover declined to 0.53, indicating a potential slowdown in asset utilization efficiency. This decline was followed by a decrease to 0.45 by December 31, 2024, possibly signaling challenges in generating revenue relative to the total assets held by the company.
Overall, nVent Electric PLC's total asset turnover has shown variability, with periods of improvement and decline. It is essential for the company to closely monitor and manage its asset utilization efficiency to maintain or enhance its financial performance in the future.
Peer comparison
Dec 31, 2024