PHINIA Inc. (PHIN)
Total asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,445,000 | 3,494,000 | 3,542,000 |
| Total assets | US$ in thousands | 3,768,000 | 4,024,000 | 3,978,000 |
| Total asset turnover | 0.91 | 0.87 | 0.89 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $3,445,000K ÷ $3,768,000K
= 0.91
Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its total assets. For PHINIA Inc., the total asset turnover ratio was 0.89 as of March 31, 2024, 0.87 as of September 30, 2024, and 0.91 as of December 31, 2024.
A total asset turnover ratio below 1 indicates that the company is generating less revenue per dollar of assets, which could suggest underutilization of assets or inefficient operations. In this case, PHINIA Inc. experienced fluctuations in its total asset turnover ratio throughout the year, with a slight improvement by the end of the year.
It is important for PHINIA Inc. to further analyze the factors influencing these changes in total asset turnover to identify areas for improvement and enhance operational efficiency. By effectively managing its assets to generate more sales revenue, the company can potentially increase its overall profitability and competitiveness in the market.
Peer comparison
Dec 31, 2024