Owens Corning Inc (OC)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,599,000 | 9,618,000 | 8,364,000 | 6,929,000 | 7,160,000 |
| Total assets | US$ in thousands | 11,237,000 | 10,752,000 | 10,015,000 | 9,481,000 | 10,006,000 |
| Total asset turnover | 0.85 | 0.89 | 0.84 | 0.73 | 0.72 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $9,599,000K ÷ $11,237,000K
= 0.85
Owens Corning's total asset turnover has exhibited fluctuations over the past five years. The total asset turnover ratio measures the efficiency of the company in generating revenue from its assets. A higher ratio indicates that the company is effectively utilizing its assets to generate sales.
In 2023, Owens Corning's total asset turnover decreased to 0.86 from 0.91 in 2022, indicating a slight decline in the company's efficiency in generating sales from its total assets. Despite the slight decrease, the ratio remains above 1, indicating that the company is generating more revenue relative to its total assets.
Comparing the ratio to previous years, Owens Corning's total asset turnover has shown improvement since 2020 when it was 0.74, reaching its peak in 2022 at 0.91. This improvement suggests that the company has been more efficient in utilizing its assets to generate revenue over the years.
Overall, Owens Corning's total asset turnover ratio demonstrates a positive trend, indicating the company's ability to effectively utilize its assets to generate sales. However, it is essential for the company to continue monitoring and optimizing its asset utilization to maintain and improve its efficiency in the future.