Terex Corporation (TEX)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,151,500 | 4,417,700 | 3,886,800 | 3,076,400 | 4,353,100 |
| Total assets | US$ in thousands | 3,615,500 | 3,118,100 | 2,863,500 | 3,031,800 | 3,195,600 |
| Total asset turnover | 1.42 | 1.42 | 1.36 | 1.01 | 1.36 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,151,500K ÷ $3,615,500K
= 1.42
Terex Corp.'s total asset turnover has shown relatively consistent performance over the past five years, ranging from 1.01 to 1.42. The ratio measures the company's ability to generate revenue from its assets, indicating how efficiently it is utilizing its assets to generate sales.
In 2020, there was a notable increase in total asset turnover to 1.01, suggesting an improvement in the company's asset utilization efficiency. This increase may have been driven by more effective management of assets or increased sales generated from the existing asset base.
Subsequently, in 2021, there was a further improvement with the total asset turnover rising to 1.36. This indicates that Terex Corp. was able to generate more revenue relative to its asset base compared to the previous year.
Notably, the total asset turnover remained stable at 1.42 in both 2022 and 2023, indicating consistent efficiency in utilizing assets to generate revenue. This suggests that Terex Corp. has maintained a relatively stable level of asset productivity over these years.
Overall, the total asset turnover trend signifies that Terex Corp. has been effectively managing its assets to generate revenue, with a clear improvement in asset utilization efficiency in recent years. This consistency and efficiency in asset turnover can reflect positively on the company's operational performance and financial health.