Smart Global Holdings Inc (SGH)

The total asset turnover ratio is a measure of a company's efficiency in generating sales from its assets. It indicates how well a company utilizes its assets to generate revenue. SMART Global Holdings Inc's total asset turnover over the past five years has shown a decreasing trend.

In Aug 25, 2023, the total asset turnover was 0.96, which indicates that the company generated $0.96 in sales for every $1 of assets. This ratio decreased compared to the previous year, suggesting a decrease in the company's efficiency in utilizing its assets to generate sales.

In Aug 26, 2022, the total asset turnover was 1.16, indicating an improvement in asset utilization compared to 2023. However, this ratio had decreased from the previous years, reflecting a declining trend in asset efficiency.

Aug 27, 2021, saw a total asset turnover of 1.12, which still represented a decrease from the prior year. This suggests that the company's asset efficiency continued to decline.

In Aug 28, 2020, the total asset turnover ratio was 1.43, indicating a more efficient use of assets compared to the preceding years. However, this ratio also decreased from the prior year, signaling a decline in asset utilization efficiency.

Finally, in Aug 30, 2019, the total asset turnover stood at 1.72, representing the highest level of asset efficiency within the five-year period. However, there was a continuous decline in this ratio over the years.

Overall, the decreasing trend in SMART Global Holdings Inc's total asset turnover suggests a potential decrease in the company's ability to generate sales from its assets. This may warrant further analysis into the company's asset management and sales generation strategies.

Peer comparison

Aug 25, 2023