Photronics Inc (PLAB)

Total asset turnover

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Revenue	US$ in thousands	894,116	851,354	674,648	609,090	549,360
Total assets	US$ in thousands	1,526,220	1,315,830	1,294,200	1,188,180	1,118,660
Total asset turnover		0.59	0.65	0.52	0.51	0.49

October 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $894,116K ÷ $1,526,220K
= 0.59

The total asset turnover for Photronics, Inc. over the past five years indicates the company's efficiency in generating sales revenue from its total assets. The ratio has exhibited fluctuating trends, decreasing from 0.63 in 2022 to 0.58 in 2023. This decrease suggests a potential decline in the company's ability to efficiently utilize its assets to generate sales.

Comparing the ratio to previous years, it is evident that in 2021 and 2020, the total asset turnover remained consistent at 0.51, indicating a stable performance in using assets to generate sales. However, there was a slight improvement from 0.49 in 2019 to 0.51 in 2020, signifying a positive shift in asset utilization efficiency.

The declining trend in the total asset turnover ratio may raise concerns about the company's operational efficiency and its ability to maximize the use of its assets to drive sales. Further analysis of the company's operational and asset management strategies could provide insights into the factors contributing to these fluctuations and help identify opportunities for improvement in asset utilization and sales generation.