Travel + Leisure Co (TNL)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,750,000 | 3,567,000 | 3,134,000 | 2,160,000 | 4,043,000 |
| Total assets | US$ in thousands | 6,738,000 | 6,757,000 | 6,588,000 | 7,613,000 | 7,453,000 |
| Total asset turnover | 0.56 | 0.53 | 0.48 | 0.28 | 0.54 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,750,000K ÷ $6,738,000K
= 0.56
The total asset turnover ratio measures the efficiency of Travel+Leisure Co in generating sales revenue from its total assets. A higher ratio indicates that the company is more efficient in utilizing its assets to generate revenue.
Analyzing the trend of Travel+Leisure Co's total asset turnover over the past five years, there has been fluctuation in the ratio. In 2023, the total asset turnover ratio increased to 0.56 from 0.53 in 2022, indicating a slight improvement in the company's ability to generate sales from its assets.
Comparing the ratio to previous years, Travel+Leisure Co's total asset turnover was higher in 2023 and 2019 at 0.56 and 0.54 respectively, indicating better asset utilization in those years. The ratio was lower in 2021, 2020 at 0.48 and 0.28 respectively, suggesting potential inefficiencies in asset management during those periods.
Overall, Travel+Leisure Co's total asset turnover has shown variability over the past five years, with some improvement in 2023 compared to the previous year. Further analysis and comparison with industry benchmarks may provide additional insights into the company's asset utilization efficiency.
Peer comparison
Dec 31, 2023