Pilgrims Pride Corp (PPC)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,897,700 | 17,112,600 | 17,295,900 | 14,639,400 | 11,996,600 |
| Total assets | US$ in thousands | 10,650,600 | 9,810,360 | 9,255,770 | 8,913,200 | 7,474,500 |
| Total asset turnover | 1.68 | 1.74 | 1.87 | 1.64 | 1.61 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $17,897,700K ÷ $10,650,600K
= 1.68
Total asset turnover measures how efficiently a company utilizes its total assets to generate revenue. For Pilgrims Pride Corp, the total asset turnover has shown a generally increasing trend over the past five years.
In December 31, 2020, the total asset turnover was 1.61, indicating that the company generated $1.61 in revenue for every $1 of total assets. By December 31, 2024, the total asset turnover had increased to 1.68. This suggests that the company has been able to improve its efficiency in utilizing its assets to generate sales.
Although there was a slight dip in the total asset turnover in 2023 compared to the previous year, the overall trend shows an improvement in asset utilization efficiency. A total asset turnover of 1.87 in December 31, 2022, was the peak during this period, indicating a significant increase in revenue generated per dollar of assets.
This trend suggests that Pilgrims Pride Corp has been managing its assets more effectively over the years, which can be a positive sign for investors and stakeholders. However, it's essential to consider other factors and ratios in conjunction with total asset turnover to get a complete picture of the company's financial health.
Peer comparison
Dec 31, 2024