Pilgrims Pride Corp (PPC)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,112,600 | 17,295,900 | 14,639,400 | 11,996,600 | 11,295,500 |
| Total assets | US$ in thousands | 9,810,360 | 9,255,770 | 8,913,200 | 7,474,500 | 7,102,360 |
| Total asset turnover | 1.74 | 1.87 | 1.64 | 1.61 | 1.59 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $17,112,600K ÷ $9,810,360K
= 1.74
The total asset turnover of Pilgrim`s Pride Corp. has fluctuated over the past five years, ranging from a low of 1.61 in 2019 to a peak of 1.89 in 2022. This ratio indicates that, on average, the company generated $1.77 in revenue for every $1 of total assets in 2023. A higher total asset turnover ratio suggests that the company is more efficient in utilizing its assets to generate sales.
The increase in total asset turnover from 2020 to 2022 indicates an improvement in the company's efficiency in generating revenue from its assets. However, the slight decrease in 2023 compared to the previous year could suggest a potential slowdown in asset utilization or revenue generation.
Overall, Pilgrim`s Pride Corp. has shown relatively good asset turnover ratios over the years, indicating sound efficiency in utilizing its assets to generate revenue. It is important for the company to continue monitoring and managing its asset turnover to ensure sustained operational efficiency and profitability.
Peer comparison
Dec 31, 2023