Resideo Technologies Inc (REZI)
Total asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,194,000 | 6,209,000 | 6,274,000 | 6,362,000 | 6,308,000 | 6,221,000 | 6,083,000 | 5,875,000 | 5,786,000 | 5,837,000 | 5,720,000 | 5,284,000 | 5,057,000 | 4,860,000 | 4,722,000 | 4,917,000 | 4,937,000 | 4,899,000 | 4,889,000 |
| Total assets | US$ in thousands | 6,645,000 | 6,459,000 | 6,536,000 | 6,399,000 | 6,387,000 | 6,262,000 | 6,316,000 | 6,245,000 | 5,853,000 | 5,834,000 | 5,712,000 | 5,576,000 | 5,610,000 | 5,269,000 | 5,166,000 | 5,287,000 | 5,128,000 | 5,133,000 | 5,160,000 |
| Total asset turnover | 0.93 | 0.96 | 0.96 | 0.99 | 0.99 | 0.99 | 0.96 | 0.94 | 0.99 | 1.00 | 1.00 | 0.95 | 0.90 | 0.92 | 0.91 | 0.93 | 0.96 | 0.95 | 0.95 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $6,194,000K ÷ $6,645,000K
= 0.93
The total asset turnover for Resideo Technologies Inc has shown a slight decline over the past few quarters, fluctuating between 0.94 and 1.00. This ratio indicates how efficiently the company is generating revenue from its total assets. A total asset turnover below 1 suggests that the company is generating less in sales relative to its total assets.
In Q1 2023 and Q4 2022, the total asset turnover was at the highest level of 1.00, indicating that the company was able to generate revenue equal to its total assets in those periods. However, in Q2 2023 and Q3 2022, the total asset turnover was also high at 0.97, showing a consistent performance in utilizing assets to generate revenue.
The declining trend seen in Q4 2023 at 0.94 may raise some concerns as it indicates a decrease in the efficiency of generating revenue from total assets compared to the previous quarters. It will be important for Resideo Technologies Inc to closely monitor and potentially improve this ratio to ensure optimal utilization of its assets and overall financial performance.