Simulations Plus Inc (SLP)

Total asset turnover

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Revenue	US$ in thousands	59,577	53,906	46,466	41,589	33,970
Total assets	US$ in thousands	186,101	188,382	179,978	168,422	45,197
Total asset turnover		0.32	0.29	0.26	0.25	0.75

August 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $59,577K ÷ $186,101K
= 0.32

The total asset turnover ratio measures the efficiency of Simulations Plus Inc. in generating sales revenue relative to its total assets. The trend in the total asset turnover ratio from 2019 to 2023 shows a fluctuating pattern. The ratio decreased from 0.75 in 2019 to 0.25 in 2020, indicating a significant decline in the company's ability to efficiently utilize its assets to generate sales. However, there was a notable improvement in 2021 with the ratio rising to 0.26 and further increasing to 0.29 in 2022, suggesting an enhanced utilization of assets to drive sales. Nonetheless, in 2023, the ratio declined slightly to 0.32, indicating a potential reduction in the effectiveness of asset utilization within the business. Overall, the company's total asset turnover has shown variability over the past five years, reflecting fluctuations in its efficiency in generating sales from its asset base.