Stepan Company (SCL)
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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,306,119 | 2,409,124 | 2,565,319 | 2,735,064 | 2,759,510 | 2,746,863 | 2,632,121 | 2,477,612 | 2,339,459 | 2,223,132 | 2,085,032 | 1,950,387 | 1,863,537 | 1,821,473 | 1,808,473 | 1,819,863 | 1,859,078 | 1,880,747 | 1,936,514 | 2,504,002 |
| Total assets | US$ in thousands | 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 | 1,579,370 | 1,518,370 | 1,528,970 | 1,526,000 |
| Total asset turnover | 0.98 | 1.03 | 1.06 | 1.12 | 1.13 | 1.18 | 1.15 | 1.09 | 1.13 | 1.14 | 1.10 | 1.07 | 1.06 | 1.13 | 1.17 | 1.21 | 1.18 | 1.24 | 1.27 | 1.64 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $2,306,119K ÷ $2,363,350K
= 0.98
Total asset turnover is a key financial ratio that measures a company's efficiency in generating sales revenue relative to its total assets. A higher total asset turnover indicates that the company is more effective in utilizing its assets to generate revenue.
Based on the data provided for Stepan Co. from Q1 2022 to Q4 2023, we observe fluctuations in the total asset turnover ratio. The ratio ranged from a low of 0.98 in Q4 2023 to a high of 1.18 in Q3 2022.
The declining trend from Q1 2023 to Q4 2023 may suggest that Stepan Co. is experiencing challenges in generating sales relative to its total assets. However, it is essential to consider the industry and economic factors impacting the company's performance.
Overall, a total asset turnover above 1 indicates that Stepan Co. is generally efficient in managing its assets to generate revenue, but the declining trend in recent quarters may warrant further investigation into the company's operational efficiency and asset utilization strategies.
Peer comparison
Dec 31, 2023