Stepan Company (SCL)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,180,270 | 2,325,770 | 2,773,270 | 2,345,970 | 1,869,750 |
| Total assets | US$ in thousands | 2,304,650 | 2,363,350 | 2,433,170 | 2,065,610 | 1,752,340 |
| Total asset turnover | 0.95 | 0.98 | 1.14 | 1.14 | 1.07 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,180,270K ÷ $2,304,650K
= 0.95
Stepan Company's total asset turnover ratio has fluctuated over the years. In December 31, 2020, the total asset turnover was 1.07, indicating that the company generated $1.07 in sales for every dollar invested in assets. The ratio improved in the following years, reaching 1.14 in both December 31, 2021, and December 31, 2022. This suggests that Stepan Company became more efficient in utilizing its assets to generate sales during these years.
However, there was a decline in total asset turnover in the subsequent years. By December 31, 2023, the ratio dropped to 0.98, and further decreased to 0.95 by December 31, 2024. This decline indicates that the company's ability to generate sales from its assets weakened during these periods, potentially raising concerns about asset efficiency and operational performance.
Overall, Stepan Company's total asset turnover has shown mixed performance over the years, with periods of improvement followed by declines. It is important for the company to closely monitor and manage its asset utilization to sustain or improve its efficiency in generating sales relative to its asset base.
Peer comparison
Dec 31, 2024