Pentair PLC (PNR)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,995,100 | 3,987,100 | 4,061,100 | 3,754,700 | 2,994,800 |
| Total assets | US$ in thousands | 6,446,500 | 6,563,300 | 6,447,500 | 4,753,600 | 4,197,200 |
| Total asset turnover | 0.62 | 0.61 | 0.63 | 0.79 | 0.71 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,995,100K ÷ $6,446,500K
= 0.62
Total asset turnover is a key efficiency ratio that measures a company's ability to generate sales from its total assets. In the case of Pentair PLC, the total asset turnover has been fluctuating over the past few years.
As of December 31, 2020, the total asset turnover was 0.71, indicating that Pentair generated $0.71 in sales for every $1 of total assets. This ratio improved to 0.79 by December 31, 2021, suggesting better asset utilization and effectiveness in generating revenue.
However, the total asset turnover declined to 0.63 by December 31, 2022, and further decreased to 0.61 by December 31, 2023. These lower ratios may indicate that Pentair is facing challenges in efficiently utilizing its assets to generate sales.
By December 31, 2024, the total asset turnover slightly improved to 0.62. It is essential for the company to closely monitor and assess its asset management strategies to enhance efficiency and increase the revenue generated from its total assets in the future.
Peer comparison
Dec 31, 2024