TE Connectivity Ltd (TEL)
Total asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 15,947,000 | 15,954,000 | 16,279,000 | 16,380,000 | 16,229,000 | 16,215,000 | 15,678,000 | 15,430,000 | 15,166,000 | 14,867,000 | 14,324,000 | 13,028,000 | 12,487,000 | 12,136,000 | 12,175,000 | 13,016,000 | 13,229,000 | 13,393,000 | 13,602,000 | 13,965,000 |
| Total assets | US$ in thousands | 23,071,000 | 21,712,000 | 21,701,000 | 21,490,000 | 21,353,000 | 20,782,000 | 21,348,000 | 21,451,000 | 21,409,000 | 21,462,000 | 21,058,000 | 20,967,000 | 20,266,000 | 19,242,000 | 18,840,000 | 19,367,000 | 19,976,000 | 19,694,000 | 19,748,000 | 19,262,000 |
| Total asset turnover | 0.69 | 0.73 | 0.75 | 0.76 | 0.76 | 0.78 | 0.73 | 0.72 | 0.71 | 0.69 | 0.68 | 0.62 | 0.62 | 0.63 | 0.65 | 0.67 | 0.66 | 0.68 | 0.69 | 0.73 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $15,947,000K ÷ $23,071,000K
= 0.69
The total asset turnover ratio of TE Connectivity Ltd has fluctuated over the past few quarters, indicating varying levels of efficiency in generating sales revenue relative to its total assets. The ratio has generally remained within a range of 0.62 to 0.78, with a slight decreasing trend in recent quarters.
A total asset turnover ratio of less than 1 suggests that TE Connectivity is not generating a sufficient level of sales revenue from its assets, which could indicate underutilization or inefficient management of assets. It appears that the company may be facing challenges in maximizing the productivity of its assets to drive sales growth.
It would be advisable for TE Connectivity to assess its asset management strategies and operational efficiency to improve its total asset turnover ratio and enhance overall financial performance. This could involve optimizing asset utilization, streamlining processes, and improving sales and marketing initiatives to drive revenue generation from its existing asset base.
Peer comparison
Dec 31, 2023