SPX Corp (SPXC)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,713,100 | 1,450,500 | 1,205,300 | 1,542,400 | 1,502,300 |
| Total assets | US$ in thousands | 2,439,700 | 1,930,900 | 2,628,600 | 2,333,700 | 2,167,800 |
| Total asset turnover | 0.70 | 0.75 | 0.46 | 0.66 | 0.69 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,713,100K ÷ $2,439,700K
= 0.70
The total asset turnover ratio of SPX Corp has fluctuated over the past five years. The ratio indicates how efficiently the company is utilizing its assets to generate revenue. A higher ratio implies better asset utilization.
In 2023, the total asset turnover decreased to 0.70 from 0.75 in 2022, suggesting a slight decline in asset efficiency. This could be a result of slower sales growth or a significant increase in total assets without a proportional increase in revenue.
The ratio was at its lowest in 2021 at 0.46, indicating that the company was generating less revenue relative to its total assets that year. This could have been due to a decrease in sales without a corresponding decrease in assets.
The ratio improved in 2020 to 0.66 from 0.69 in 2019, suggesting better asset utilization that year. This could be attributed to increased sales without a significant increase in total assets.
Overall, while the total asset turnover of SPX Corp has fluctuated, it is important for the company to consistently monitor and improve this ratio to ensure optimal utilization of its assets in generating revenue.
Peer comparison
Dec 31, 2023