Ryder System Inc (R)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,783,000 | 12,011,000 | 9,663,000 | 8,420,000 | 8,925,800 |
| Total assets | US$ in thousands | 15,778,000 | 14,395,000 | 13,835,000 | 12,932,000 | 14,475,300 |
| Total asset turnover | 0.75 | 0.83 | 0.70 | 0.65 | 0.62 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $11,783,000K ÷ $15,778,000K
= 0.75
Ryder System, Inc.'s total asset turnover ratio has shown fluctuations over the past five years. The ratio measures the efficiency with which the company utilizes its assets to generate revenue. A higher ratio indicates that the company is generating more revenue per dollar of assets.
In 2023, the total asset turnover ratio decreased to 0.75 from 0.83 in 2022, suggesting a lower efficiency in asset utilization to generate revenue. However, the ratio was still higher compared to 2021 and prior years, indicating some improvement.
The trend from 2020 to 2022 shows a gradual increase in total asset turnover, implying that Ryder was becoming more efficient in generating revenue from its assets during those years. The significant improvement from 0.62 in 2019 to 0.83 in 2022 reflects a substantial enhancement in asset utilization efficiency.
Overall, Ryder System, Inc. should continue to focus on improving its total asset turnover ratio to maximize revenue generation from its asset base and enhance overall operational efficiency.
Peer comparison
Dec 31, 2023