Sterling Construction Company Inc (STRL)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,115,760 | 1,972,230 | 1,769,440 | 1,414,370 | 1,226,740 |
| Total assets | US$ in thousands | 2,016,770 | 1,777,180 | 1,441,620 | 1,234,770 | 952,694 |
| Total asset turnover | 1.05 | 1.11 | 1.23 | 1.15 | 1.29 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,115,760K ÷ $2,016,770K
= 1.05
The total asset turnover ratio of Sterling Construction Company Inc has exhibited fluctuations over the period from December 31, 2020, to December 31, 2024. Specifically, the ratio was 1.29 at the end of 2020, indicating that for every dollar of assets, the company generated approximately $1.29 in sales. By the end of 2021, the ratio decreased to 1.15, reflecting a decline in sales efficiency relative to the total assets employed.
This downward trend continued into 2022, with the ratio slightly increasing to 1.23, suggesting a modest improvement in the utilization of total assets in generating sales. However, the ratio declined again in 2023 to 1.11, indicating a further decrease in asset efficiency compared to the previous year. The lowest point in the period was recorded at 1.05 in 2024, signifying a continuing decline in the company's ability to generate sales from its assets.
Overall, the trend indicates a gradual reduction in the company's total asset turnover ratio, which may point to challenges in asset utilization efficiency or a possible strategic shift in operations that has impacted sales relative to the asset base.
Peer comparison
Dec 31, 2024