Resideo Technologies Inc (REZI)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,761,000 | 6,242,000 | 6,370,000 | 5,846,000 | 5,071,000 |
| Total assets | US$ in thousands | 8,199,000 | 6,645,000 | 6,387,000 | 5,853,000 | 5,610,000 |
| Total asset turnover | 0.82 | 0.94 | 1.00 | 1.00 | 0.90 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,761,000K ÷ $8,199,000K
= 0.82
Total asset turnover is a measure of a company's efficiency in generating sales revenue from its total assets. It indicates how well a company is utilizing its assets to generate sales. In the case of Resideo Technologies Inc, the total asset turnover has fluctuated over the past five years.
As of December 31, 2020, the total asset turnover was 0.90, indicating that the company generated $0.90 in sales for every $1 of total assets. Over the next two years, the total asset turnover remained relatively stable at 1.00, implying that the company maintained its efficiency in utilizing its assets to generate revenue.
However, by December 31, 2023, the total asset turnover decreased to 0.94, suggesting a slight decrease in the company's efficiency in generating sales from its assets. This decline continued into December 31, 2024, with a total asset turnover of 0.82, indicating a more significant drop in efficiency in utilizing assets to generate revenue.
The fluctuation in total asset turnover for Resideo Technologies Inc over the years could be attributed to changes in the company's sales growth relative to its asset base. Further analysis would be required to understand the underlying factors contributing to these fluctuations and to determine the impact on the company's overall performance.