SanDisk Corp (SNDK)
Total asset turnover
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,564,870 | 6,627,700 | 6,170,000 | 5,052,510 | 4,826,810 |
| Total assets | US$ in thousands | 9,230,760 | 10,290,000 | 10,488,700 | 10,339,100 | 10,174,600 |
| Total asset turnover | 0.60 | 0.64 | 0.59 | 0.49 | 0.47 |
December 31, 2015 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,564,870K ÷ $9,230,760K
= 0.60
Total asset turnover measures how efficiently a company is utilizing its assets to generate revenue. Looking at the data provided for SanDisk Corp, we can see a gradual improvement in the total asset turnover ratio over the years.
In December 31, 2011, the total asset turnover was 0.47, indicating that for every dollar of assets, the company generated $0.47 in revenue. This ratio increased to 0.49 by December 31, 2012, suggesting a slightly improved efficiency in asset utilization.
The company's total asset turnover continued to increase in the following years, reaching 0.59 by December 31, 2013, and further improving to 0.64 by December 31, 2014. These increases indicate that SanDisk Corp was effectively using its assets to generate more revenue during these periods.
However, there was a slight decrease in the total asset turnover ratio to 0.60 by December 31, 2015. This could imply a small decrease in the efficiency of asset utilization or a shift in the company's business operations during that year.
Overall, the trend of increasing total asset turnover ratios from 2011 to 2014 demonstrates an improvement in SanDisk Corp's ability to generate revenue from its assets. Analyzing this ratio can provide insights into the company's operational efficiency and effectiveness in utilizing its resources to drive business performance.
Peer comparison
Dec 31, 2015