Tempur Sealy International Inc (TPX)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,925,400 | 4,921,200 | 4,930,800 | 3,676,900 | 3,106,000 |
| Total assets | US$ in thousands | 4,553,900 | 4,359,800 | 4,323,400 | 3,308,600 | 3,061,800 |
| Total asset turnover | 1.08 | 1.13 | 1.14 | 1.11 | 1.01 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,925,400K ÷ $4,553,900K
= 1.08
Total asset turnover is a financial ratio that indicates how efficiently a company utilizes its assets to generate revenue. It is calculated by dividing net sales by average total assets. A higher total asset turnover generally suggests that a company is better at utilizing its assets to generate revenue.
Analyzing Tempur Sealy International Inc's total asset turnover from 2019 to 2023, we observe fluctuations in the ratio over the years. In 2019, the total asset turnover was 1.01, indicating that the company generated $1.01 in sales for every $1 of assets. This ratio increased to 1.11 in 2020, suggesting improved asset utilization.
In 2021, Tempur Sealy International Inc's total asset turnover further increased to 1.14, indicating more efficient asset utilization in generating revenue. The trend continued in 2022 with a total asset turnover of 1.13, showing consistent efficiency in asset management.
However, in 2023, there was a slight decrease in total asset turnover to 1.08. This decrease suggests that Tempur Sealy International Inc may have been slightly less efficient in utilizing its assets to generate revenue compared to the previous year.
Overall, Tempur Sealy International Inc's total asset turnover remained relatively strong, indicating effective asset management practices. Continued monitoring of this ratio will be essential to assess the company's ongoing efficiency in utilizing its assets to drive revenue growth.
Peer comparison
Dec 31, 2023