OSI Systems Inc (OSIS)

Total asset turnover

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Revenue (ttm)	US$ in thousands	1,538,758	1,464,019	1,361,502	1,283,864	1,272,725	1,200,950	1,188,538	1,169,622	1,180,808	1,174,471	1,167,781	1,167,109	1,142,760	1,087,192	1,096,288	1,125,621	1,161,565	1,175,951	1,187,352	1,185,215
Total assets	US$ in thousands	1,936,010	1,831,080	1,726,480	1,588,450	1,555,690	1,483,300	1,466,230	1,467,770	1,443,150	1,459,090	1,443,110	1,443,150	1,384,370	1,325,960	1,300,800	1,270,950	1,268,540	1,286,590	1,301,930	1,290,100
Total asset turnover		0.79	0.80	0.79	0.81	0.82	0.81	0.81	0.80	0.82	0.80	0.81	0.81	0.83	0.82	0.84	0.89	0.92	0.91	0.91	0.92

June 30, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,538,758K ÷ $1,936,010K
= 0.79

The total asset turnover ratio measures the efficiency with which a company generates revenue relative to its total assets. Over the periods presented, OSI Systems Inc's total asset turnover has fluctuated within a range of 0.79 to 0.92. A lower total asset turnover ratio indicates that the company is generating less revenue for each dollar of assets it holds, suggesting potential inefficiencies in asset utilization or sales generation. Conversely, a higher ratio implies better efficiency in generating revenue from its assets.

OSI Systems Inc's total asset turnover ratio has shown some variability, but generally, it has maintained stability around the range of 0.80 to 0.84 in recent quarters. This consistency may indicate a steady performance in utilizing its assets to generate sales. However, the decrease in the ratio from 0.92 in the third quarter of 2020 to 0.79 in the second quarter of 2024 could raise concerns about potential declines in sales relative to the company's asset base.

Overall, a detailed analysis of the individual components contributing to the total asset turnover ratio, such as revenue and total assets, would provide deeper insights into the company's operational efficiency and asset management practices.