Somnigroup International Inc. (SGI)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,930,900 | 4,925,400 | 4,921,200 | 4,930,800 | 3,676,900 |
| Total assets | US$ in thousands | 5,980,400 | 4,553,900 | 4,359,800 | 4,323,400 | 3,308,600 |
| Total asset turnover | 0.82 | 1.08 | 1.13 | 1.14 | 1.11 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,930,900K ÷ $5,980,400K
= 0.82
Somnigroup International Inc.'s total asset turnover has shown some fluctuations over the years. The ratio was relatively stable around 1.11 in 2020, 1.14 in 2021, and 1.13 in 2022. However, there was a slight decrease to 1.08 in 2023, and a more significant drop to 0.82 in 2024.
A total asset turnover ratio of 1.11 to 1.14 indicates that, on average, the company generates between $1.11 to $1.14 in revenue for every dollar of total assets held during those years. This suggests efficient utilization of assets to generate sales.
The decline in total asset turnover to 1.08 in 2023 may indicate a potential inefficiency in asset management or a decrease in sales relative to the asset base. The further drop to 0.82 in 2024 is of more concern as it suggests a significant decrease in revenue generation relative to the total assets held, which could potentially indicate operational challenges or underutilization of assets.
Overall, a declining trend in total asset turnover warrants further investigation into the company's operational efficiency, asset utilization, and sales performance to address any underlying issues and improve financial performance in the future.
Peer comparison
Dec 31, 2024