Somnigroup International Inc. (SGI)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,925,400 | 4,921,200 | 4,930,800 | 3,676,900 | 3,106,000 |
| Total assets | US$ in thousands | 4,553,900 | 4,359,800 | 4,323,400 | 3,308,600 | 3,061,800 |
| Total asset turnover | 1.08 | 1.13 | 1.14 | 1.11 | 1.01 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,925,400K ÷ $4,553,900K
= 1.08
Total asset turnover measures how efficiently a company generates revenue from its total assets. For Somnigroup International Inc., the total asset turnover has shown an increasing trend over the past five years. It was 1.01 at the end of December 31, 2019, and has steadily increased to 1.11, 1.14, and 1.13 at the end of December 31, 2020, 2021, and 2022, respectively. However, there was a slight decrease to 1.08 at the end of December 31, 2023.
The increasing trend in total asset turnover indicates that Somnigroup International Inc. has been more effective in utilizing its assets to generate revenue over the years. A higher total asset turnover signifies that the company is efficiently managing its assets to drive sales, which can lead to better profitability. The slight decrease in 2023 may warrant further investigation to understand the factors causing this change and assess if it is a temporary fluctuation or part of a larger trend.
Peer comparison
Dec 31, 2023