Simulations Plus Inc (SLP)

Total asset turnover

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Revenue	US$ in thousands	74,774	59,577	53,906	46,466	41,589
Total assets	US$ in thousands	196,639	186,101	188,382	179,978	168,422
Total asset turnover		0.38	0.32	0.29	0.26	0.25

August 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $74,774K ÷ $196,639K
= 0.38

Simulations Plus Inc's total asset turnover has been showing an increasing trend over the past five years, reflecting the company's efficiency in generating sales revenue relative to its total assets. The ratio has improved from 0.25 in 2020 to 0.38 in 2024, indicating that the company is utilizing its assets more effectively to generate sales. This improvement suggests that Simulations Plus Inc has been able to increase its revenue without significantly increasing its asset base, which is a positive sign of operational efficiency and effective asset management. It implies that the company is making better use of its assets to drive sales and enhance overall performance.