Sempra Energy (SRE)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 16,720,000 | 14,439,000 | 12,857,000 | 11,370,000 | 10,829,000 |
| Total assets | US$ in thousands | 87,181,000 | 78,574,000 | 72,045,000 | 66,623,000 | 65,665,000 |
| Total asset turnover | 0.19 | 0.18 | 0.18 | 0.17 | 0.16 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $16,720,000K ÷ $87,181,000K
= 0.19
The total asset turnover ratio for Sempra has shown a consistent upward trend over the past five years, increasing from 0.16 in 2019 to 0.19 in 2023. This indicates that Sempra has been more efficient in generating revenue relative to its total assets.
A total asset turnover ratio of 0.19 in 2023 means that for every dollar of total assets, Sempra generated $0.19 of revenue during the year. This reflects a moderate level of efficiency in asset utilization.
The improvement in the total asset turnover ratio suggests that Sempra has managed to increase its revenue generation relative to its asset base. This could be a result of effective asset management, increased sales, or a combination of both.
Overall, a higher total asset turnover ratio is generally considered favorable as it indicates that the company is utilizing its assets efficiently to generate revenue.
Peer comparison
Dec 31, 2023