Newell Brands Inc (NWL)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,824,000 | 9,305,000 | 10,336,000 | 9,059,000 | 9,688,100 |
| Total assets | US$ in thousands | 12,163,000 | 13,262,000 | 14,269,000 | 14,700,000 | 15,642,000 |
| Total asset turnover | 0.64 | 0.70 | 0.72 | 0.62 | 0.62 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $7,824,000K ÷ $12,163,000K
= 0.64
The total asset turnover ratio for Newell Brands Inc has shown a fluctuating trend over the past five years. The ratio was 0.62 in 2019, increased to 0.64 in 2020, further improved to 0.75 in 2021, but started declining to 0.71 in 2022 and then to 0.67 in 2023.
A total asset turnover ratio below 1 indicates that the company is generating less than $1 in revenue for every dollar of assets it owns. The decreasing trend in the ratio from 2021 to 2023 may suggest that Newell Brands Inc's efficiency in generating sales from its total assets has declined slightly over the past two years.
It is essential for the company to closely examine the reasons behind this decline and consider strategies to optimize the utilization of its assets to improve its total asset turnover ratio and enhance overall operational efficiency.
Peer comparison
Dec 31, 2023