Packaging Corp of America (PKG)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,383,300 | 7,802,400 | 8,478,000 | 7,730,300 | 6,658,200 |
| Total assets | US$ in thousands | 8,833,200 | 8,681,100 | 8,003,800 | 7,836,800 | 7,433,200 |
| Total asset turnover | 0.95 | 0.90 | 1.06 | 0.99 | 0.90 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $8,383,300K ÷ $8,833,200K
= 0.95
The total asset turnover for Packaging Corp of America has shown mixed performance over the past five years. Starting at 0.90 in December 2020, it increased steadily to 1.06 by December 2022, indicating that the company was generating more revenue relative to its total assets during this period. However, there was a decrease in total asset turnover to 0.90 by December 2023, followed by a slight recovery to 0.95 by December 2024.
A total asset turnover ratio of less than 1 may suggest that the company is not efficiently utilizing its assets to generate sales. On the other hand, a ratio greater than 1 indicates that the company is generating more revenue from its assets, which is generally seen as positive.
Overall, Packaging Corp of America's total asset turnover has fluctuated during the period under review, showing both improvements and setbacks in terms of asset utilization efficiency. More in-depth analysis would be needed to understand the factors driving these fluctuations and to determine the company's overall operational effectiveness.
Peer comparison
Dec 31, 2024