Sanmina Corporation (SANM)

Total asset turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	8,898,760	7,890,480	6,756,640	6,960,370	8,233,860
Total assets	US$ in thousands	4,873,970	4,835,530	4,206,720	3,772,660	3,905,510
Total asset turnover		1.83	1.63	1.61	1.84	2.11

September 30, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $8,898,760K ÷ $4,873,970K
= 1.83

Sanmina Corp's total asset turnover, a key financial ratio used to measure a company's efficiency in utilizing its assets to generate sales, has fluctuated over the past five years. The total asset turnover ratio is calculated by dividing the company's net sales by its average total assets.

In 2023, Sanmina Corp's total asset turnover was 1.83, indicating that the company generated $1.83 in sales for every dollar of average total assets during the year. This represents an improvement from the previous year's ratio of 1.62. The increase in total asset turnover suggests that the company's assets were more efficiently utilized to generate revenue in 2023 compared to 2022.

However, it's noteworthy that the total asset turnover ratio was lower in 2022 and 2021, at 1.62 and 1.61 respectively. This suggests that the company's ability to generate sales from its assets was less efficient during these years.

In 2020, the total asset turnover ratio rebounded to 1.84, which was higher than the ratios of the two preceding years but still lower than the ratio in 2019. This indicates that the company experienced a moderate improvement in utilizing its assets to generate sales in 2020.

The highest total asset turnover ratio over the five-year period was recorded in 2019 at 2.11, indicating that Sanmina Corp was able to generate the highest level of sales from its assets during that year.

Overall, the fluctuation in Sanmina Corp's total asset turnover indicates varying degrees of efficiency in utilizing its assets to generate sales over the five-year period. It would be important to delve deeper into the company's financial and operational performance to understand the factors driving the changes in total asset turnover across these years.