Pentair PLC (PNR)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,987,100 | 4,061,100 | 3,754,700 | 2,994,800 | 2,957,200 |
| Total assets | US$ in thousands | 6,563,300 | 6,447,500 | 4,753,600 | 4,197,200 | 4,139,500 |
| Total asset turnover | 0.61 | 0.63 | 0.79 | 0.71 | 0.71 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,987,100K ÷ $6,563,300K
= 0.61
The total asset turnover ratio for Pentair plc has shown a decreasing trend over the past five years, declining from 0.71 in 2019 to 0.63 in 2023. This indicates that Pentair is generating less revenue relative to its total assets in recent years.
A total asset turnover ratio of less than 1 suggests that the company is not efficiently utilizing its assets to generate sales. This could be due to a variety of factors such as inefficiencies in operations, underutilization of assets, or declining sales relative to asset base.
Further analysis and comparison with industry benchmarks and competitors may be necessary to better understand the reasons behind the decreasing trend in Pentair's total asset turnover and identify areas for improvement in asset utilization and revenue generation.
Peer comparison
Dec 31, 2023