Simpson Manufacturing Company Inc (SSD)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,207,600 | 2,106,880 | 1,564,670 | 1,265,190 | 1,139,370 |
| Total assets | US$ in thousands | 2,704,720 | 2,503,970 | 1,484,120 | 1,232,570 | 1,095,370 |
| Total asset turnover | 0.82 | 0.84 | 1.05 | 1.03 | 1.04 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,207,600K ÷ $2,704,720K
= 0.82
Simpson Manufacturing Co., Inc.'s total asset turnover has exhibited some fluctuations over the past five years. The company's total asset turnover ratio decreased from 1.04 in 2019 to 1.03 in 2020, before dropping further to 1.06 in 2021. However, there was a notable decline in this ratio in 2022 to 0.85 and a further decrease to 0.82 in 2023.
A lower total asset turnover ratio indicates that the company is generating less revenue per dollar of assets it holds. This could suggest issues with asset utilization efficiency or a decrease in sales compared to the total assets. It is essential for the company to analyze the reasons behind the decline in total asset turnover to identify areas for improvement in its operations or sales strategies.
Peer comparison
Dec 31, 2023