Simpson Manufacturing Company Inc (SSD)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,230,640 | 2,207,600 | 2,106,880 | 1,564,670 | 1,265,190 |
| Total assets | US$ in thousands | 2,736,170 | 2,704,720 | 2,503,970 | 1,484,120 | 1,232,570 |
| Total asset turnover | 0.82 | 0.82 | 0.84 | 1.05 | 1.03 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,230,640K ÷ $2,736,170K
= 0.82
The total asset turnover of Simpson Manufacturing Company Inc has shown some fluctuations over the past five years. The ratio, which measures how efficiently the company is utilizing its assets to generate sales, increased from 1.03 in December 2020 to 1.05 in December 2021, indicating improved efficiency in generating sales relative to its total assets during that period.
However, the total asset turnover then declined to 0.84 in December 2022 and remained at 0.82 in both December 2023 and December 2024. This decline suggests that the company may be facing challenges in effectively utilizing its assets to generate revenue in recent years.
Overall, the decreasing trend in total asset turnover from 2021 to 2024 may indicate a potential inefficiency in the company's asset management or a slowdown in sales growth relative to asset investments. Simpson Manufacturing Company Inc may need to reassess its asset utilization strategies to improve its operational efficiency and optimize the use of its assets going forward.
Peer comparison
Dec 31, 2024