Simply Good Foods Co (SMPL)

Total asset turnover

		Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019
Revenue	US$ in thousands	1,242,670	1,168,680	1,005,610	816,641	523,383
Total assets	US$ in thousands	2,097,080	2,094,250	2,052,220	2,008,440	1,141,650
Total asset turnover		0.59	0.56	0.49	0.41	0.46

August 26, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,242,670K ÷ $2,097,080K
= 0.59

The total asset turnover ratio measures a company's efficiency in utilizing its total assets to generate revenue. Simply Good Foods Co's total asset turnover has shown an increasing trend over the past five years, indicating improvements in asset utilization.

In 2019, the total asset turnover was 0.46, reflecting that for every dollar of total assets, the company generated $0.46 of revenue. This ratio increased to 0.49 in 2021, indicating that the company improved its efficiency in generating revenue from its assets. The ratio continued to rise to 0.56 in 2022 and further to 0.59 in 2023, signaling a consistent positive trend.

The increasing total asset turnover suggests that Simply Good Foods Co has been more efficient in managing its assets to generate sales, which is a positive indicator of the company's operational performance. It also implies that the company is effectively using its assets to drive revenue growth, potentially resulting in improved profitability.

Overall, the rising trend in total asset turnover reflects positively on Simply Good Foods Co's ability to maximize the revenue-generating potential of its total assets over the years, which can be seen as a favorable sign of operational efficiency and effective resource management.