TE Connectivity Ltd (TEL)
Total asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,845,000 | 15,954,000 | 16,215,000 | 14,867,000 | 12,124,000 |
| Total assets | US$ in thousands | 22,854,000 | 21,712,000 | 20,782,000 | 21,462,000 | 19,242,000 |
| Total asset turnover | 0.69 | 0.73 | 0.78 | 0.69 | 0.63 |
September 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $15,845,000K ÷ $22,854,000K
= 0.69
TE Connectivity Ltd's total asset turnover ratio has fluctuated over the past five years, with values ranging from 0.63 to 0.78. The ratio measures the company's ability to generate sales revenue from its assets, indicating how efficiently the company is utilizing its total assets to generate sales. A higher total asset turnover ratio is generally preferred as it suggests that the company is more efficient in generating sales from its assets.
In 2022, the total asset turnover ratio was at its highest, indicating that TE Connectivity Ltd was able to generate more sales for each dollar of total assets compared to the other years in the data set. However, in 2020 and 2021, the ratio was lower, suggesting that the company may have been less effective in utilizing its assets to generate revenue during those years.
Overall, the fluctuation in TE Connectivity Ltd's total asset turnover ratio over the past five years may indicate changes in business operations, asset utilization, or industry conditions. Further analysis of the company's financial performance and operational factors may be necessary to fully understand the implications of these changes in the total asset turnover ratio.
Peer comparison
Sep 30, 2024