Simulations Plus Inc (SLP)

Total asset turnover

		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	Aug 31, 2019	May 31, 2019
Revenue (ttm)	US$ in thousands	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	33,971	32,633
Total assets	US$ in thousands	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	45,197	45,502
Total asset turnover		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	0.75	0.72

February 29, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $64,668K ÷ $193,973K
= 0.33

The total asset turnover ratio for Simulations Plus Inc has been relatively stable in recent periods, ranging from 0.26 to 0.33. The ratio indicates that, on average, the company generates around $0.26 to $0.33 in revenue for each dollar of assets it holds.

The consistent ratio suggests that Simulations Plus has been effective in utilizing its assets to generate revenue over the analyzed period. However, it is also important to note the significant spike in total asset turnover to 1.12 in the quarter ending May 31, 2020, which could be an anomaly or may indicate a specific event or change in business operations at that time.

Overall, the company's ability to efficiently generate revenue from its assets appears to be relatively stable, which is a positive indicator of operational efficiency and effectiveness in utilizing its resources.