Sanmina Corporation (SANM)

Total asset turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	7,551,700	7,577,960	7,933,580	8,418,020	8,904,310	9,085,410	8,906,110	8,514,240	7,922,760	7,348,510	6,984,030	6,759,880	6,753,930	6,978,280	6,979,700	6,875,450	6,960,370	6,977,620	7,349,930	7,886,020
Total assets	US$ in thousands	4,822,840	4,663,530	4,686,260	4,616,980	4,873,970	4,957,890	5,029,460	1,579,280	4,835,530	4,743,670	4,649,910	4,502,010	4,206,720	4,002,590	3,765,740	3,779,730	3,772,660	4,474,700	4,360,180	3,829,740
Total asset turnover		1.57	1.62	1.69	1.82	1.83	1.83	1.77	5.39	1.64	1.55	1.50	1.50	1.61	1.74	1.85	1.82	1.84	1.56	1.69	2.06

September 30, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $7,551,700K ÷ $4,822,840K
= 1.57

Total asset turnover is a key financial ratio that measures a company's ability to generate sales from its total assets. In the case of Sanmina Corporation, the total asset turnover ratio has fluctuated over the past several quarters. The ratio was relatively stable around 1.5 to 1.8 until the end of 2022, indicating that the company was generating approximately $1.50 to $1.80 in revenue for every dollar of assets it had during this period.

However, there was a significant spike in the total asset turnover ratio in the fourth quarter of 2022, reaching a high of 5.39. This sudden increase may be attributed to various factors, such as a large increase in sales relative to the company's total assets or a significant decrease in total assets due to divestitures or other strategic actions.

Following the spike, the total asset turnover ratio gradually decreased but remained relatively stable around 1.5 to 1.7 during the subsequent quarters. This trend suggests that Sanmina Corporation has been able to efficiently utilize its assets to generate sales, although the company's performance in this aspect has not reached the peak observed in the fourth quarter of 2022.

Overall, the total asset turnover ratio for Sanmina Corporation indicates that the company has been effectively leveraging its assets to generate revenue, with some fluctuations in efficiency over the various reporting periods. Monitoring this ratio over time can provide insights into the company's operational efficiency and how effectively it is utilizing its assets to drive sales.