Simulations Plus Inc (SLP)

Total asset turnover

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Revenue (ttm)	US$ in thousands	72,188	68,509	64,668	62,113	59,577	55,682	54,407	53,453	53,906	52,013	49,831	48,182	46,466	46,165	45,686	42,889	41,589	40,075	37,714	35,836
Total assets	US$ in thousands	196,639	192,691	193,973	185,778	186,101	179,134	173,201	190,461	188,382	186,223	185,044	180,994	179,978	179,083	175,769	170,470	168,422	35,885	49,200	47,763
Total asset turnover		0.37	0.36	0.33	0.33	0.32	0.31	0.31	0.28	0.29	0.28	0.27	0.27	0.26	0.26	0.26	0.25	0.25	1.12	0.77	0.75

August 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $72,188K ÷ $196,639K
= 0.37

Total asset turnover measures a company's ability to generate sales revenue from its assets. For Simulations Plus Inc, the total asset turnover ratio has been relatively stable in recent periods, fluctuating between 0.25 and 0.37. This indicates that the company is generating approximately $0.25 to $0.37 in sales for every dollar of assets it owns.

The gradual improvement in total asset turnover over the years suggests that Simulations Plus Inc has become more efficient in utilizing its assets to generate revenue. However, the ratio is still relatively low compared to industry norms, indicating that there may be room for further improvement in asset utilization efficiency.

It is essential for the company to continue monitoring its asset turnover ratio and take measures to enhance efficiency in asset management to drive profitability and enhance overall financial performance.