Stepan Company (SCL)
Total asset turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,180,274 | 2,186,796 | 2,202,180 | 2,225,750 | 2,325,768 | 2,420,813 | 2,577,772 | 2,749,430 | 2,773,270 | 2,756,121 | 2,639,624 | 2,483,502 | 2,345,966 | 2,230,673 | 2,092,465 | 1,957,503 | 1,869,750 | 1,820,006 | 1,807,108 | 1,819,562 |
| Total assets | US$ in thousands | 2,304,650 | 2,413,790 | 2,348,590 | 2,373,150 | 2,363,350 | 2,333,530 | 2,430,820 | 2,445,940 | 2,433,170 | 2,336,770 | 2,288,800 | 2,272,600 | 2,065,610 | 1,955,940 | 1,887,300 | 1,827,940 | 1,752,340 | 1,617,650 | 1,543,410 | 1,506,300 |
| Total asset turnover | 0.95 | 0.91 | 0.94 | 0.94 | 0.98 | 1.04 | 1.06 | 1.12 | 1.14 | 1.18 | 1.15 | 1.09 | 1.14 | 1.14 | 1.11 | 1.07 | 1.07 | 1.13 | 1.17 | 1.21 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $2,180,274K ÷ $2,304,650K
= 0.95
Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its total assets. Stepan Company's total asset turnover has shown a downward trend over the past few years, starting at 1.21 in March 2020 and decreasing to 0.95 by December 2024. This indicates that the company is generating less revenue relative to its total assets.
The decreasing trend in total asset turnover could suggest that Stepan Company may be experiencing challenges in utilizing its assets efficiently to generate sales. A declining total asset turnover may also indicate potential inefficiencies in the company's operations and management of its assets.
It is important for Stepan Company to closely monitor its total asset turnover ratio and investigate the reasons behind the decline. By identifying and addressing the factors contributing to the decreasing ratio, the company can work towards improving its asset utilization efficiency and overall financial performance.
Peer comparison
Dec 31, 2024