ODP Corp (ODP)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,812,000 | 8,477,000 | 8,439,000 | 9,660,000 | 10,561,000 |
| Total assets | US$ in thousands | 3,886,000 | 4,149,000 | 4,865,000 | 5,614,000 | 7,311,000 |
| Total asset turnover | 2.01 | 2.04 | 1.73 | 1.72 | 1.44 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $7,812,000K ÷ $3,886,000K
= 2.01
ODP Corp's total asset turnover ratio has shown a generally increasing trend over the past five years, indicating an improvement in the company's efficiency in generating sales from its total assets. In 2019, the total asset turnover was 1.44, and it has steadily increased to 2.01 in 2023. This suggests that the company is utilizing its assets more effectively to generate revenue.
A total asset turnover ratio of 2.01 in 2023 means that for every dollar of total assets ODP Corp has, it generates $2.01 in sales. This indicates that the company is efficient in utilizing its assets to generate revenue. It is important to note that a higher total asset turnover ratio is generally favorable as it signifies better asset utilization and efficiency in generating sales.
Overall, the increasing trend in ODP Corp's total asset turnover ratio reflects the company's improving efficiency in utilizing its assets to drive sales growth, which is a positive signal for investors and stakeholders.
Peer comparison
Dec 31, 2023