Terex Corporation (TEX)
Total asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,127,200 | 5,108,800 | 5,186,900 | 5,208,300 | 5,151,500 | 5,146,500 | 4,976,900 | 4,650,900 | 4,417,700 | 4,190,200 | 4,063,500 | 4,025,100 | 3,886,800 | 3,683,400 | 3,455,200 | 3,107,000 | 3,076,400 | 3,174,700 | 3,433,700 | 4,050,100 |
| Total assets | US$ in thousands | 5,730,000 | 3,781,000 | 3,779,500 | 3,759,900 | 3,615,000 | 3,461,100 | 3,415,200 | 3,281,200 | 3,118,100 | 2,976,500 | 2,993,700 | 2,939,900 | 2,863,500 | 3,067,900 | 3,068,500 | 2,965,500 | 3,031,800 | 2,915,200 | 2,864,300 | 3,114,700 |
| Total asset turnover | 0.89 | 1.35 | 1.37 | 1.39 | 1.43 | 1.49 | 1.46 | 1.42 | 1.42 | 1.41 | 1.36 | 1.37 | 1.36 | 1.20 | 1.13 | 1.05 | 1.01 | 1.09 | 1.20 | 1.30 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $5,127,200K ÷ $5,730,000K
= 0.89
Terex Corporation's total asset turnover ratio has shown fluctuations over the past few years. The ratio declined from 1.30 as of March 31, 2020, to 0.89 as of December 31, 2024. This indicates that the company generated less revenue relative to its total assets at the end of 2024 compared to the beginning of 2020.
The trend was characterized by a gradual decrease in total asset turnover until around March 31, 2024, where the ratio hit its lowest point. However, from that point onwards, there was a slight improvement in the ratio, reaching 1.35 by December 31, 2024.
A total asset turnover ratio below 1 signifies that the company is not generating sufficient revenue compared to its total assets, which may indicate operational inefficiencies or underutilization of assets. It is important for Terex Corporation to monitor this ratio closely to ensure optimal utilization of its assets to generate higher revenue in the future.