Quanex Building Products (NX)
Total asset turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,130,580 | 1,221,500 | 1,072,150 | 851,573 | 893,841 |
| Total assets | US$ in thousands | 831,143 | 724,617 | 717,323 | 691,585 | 645,110 |
| Total asset turnover | 1.36 | 1.69 | 1.49 | 1.23 | 1.39 |
October 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,130,580K ÷ $831,143K
= 1.36
The total asset turnover ratio measures a company's ability to generate revenue in relation to its total assets. A higher total asset turnover ratio indicates effective utilization of assets to generate sales.
Looking at Quanex Building Products Corp's total asset turnover over the past five years, we can see fluctuations in the ratio. In 2023, the total asset turnover stood at 1.36, representing a decrease from the previous year's ratio of 1.69. This indicates that the company generated $1.36 in revenue for every dollar of assets in 2023.
Comparing this to the previous years, we see that the ratio was higher in 2022 at 1.69, which suggests that the company was more efficient in generating sales from its assets in that year. This indicates a downward trend in the efficiency of generating sales from assets.
In 2021, the ratio was 1.49, which, although lower than the peak in 2022, was still relatively high and showed efficient use of assets to generate revenue. However, in 2020, the ratio dropped to 1.23, indicating a decrease in assets' effectiveness in generating sales. The ratio then rebounded in 2019 to 1.39, suggesting improved asset utilization for revenue generation.
The fluctuation in the total asset turnover ratio over the years highlights the varying efficiency levels in utilizing assets to generate sales. It is essential for Quanex Building Products Corp to further investigate the causes of these fluctuations to ensure consistent and effective asset utilization for revenue generation in the future.
Peer comparison
Oct 31, 2023